Food giant Cargill to buy $290 million stake in Chile salmon farmer

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FILE PHOTO: A Cargill logo is pictured on the Provimi Kliba and Protector animal nutrition factory in Lucens

SANTIAGO – U.S.-based commodities trader Cargill Inc has agreed to acquire a 24.5% stake in the salmon farming subsidiary of Chile’s Multiexport Foods for some $290 million, it said on Friday.

Chile is the world’s second largest salmon producer after Norway. Cargill is a leading supplier of salmon feed.

Under the deal, Salmones Multiexport will also have a 1.13% stake sold to a local unit of Japan’s Mitsui & Co, whose stake in the firm will also reach 24.5%.

Multiexport Foods is set to receive a total $303.3 million.

The conditions of the deal – which still requires approval from antitrust watchdogs in the Unites States, Brazil and Chile – must be fulfilled in up to six months.

(Reporting by Fabian Andres Cambero; Writing by Gabriel Araujo; Editing by Chizu Nomiyama)