TUF set to play last card for Bumble Bee

TUF set to play last card for Bumble Bee

SET-listed Thai Union Group Plc is ready to sell its Chicken of the Sea tuna business in the US if the US Justice Department will allow it to seal a US$15.1-billion Bumble Bee Seafoods deal.

"We're now preparing a plan to sell Chicken of the Sea. We are in talks with potential buyers and expect to sell it immediately if the Justice Department gives the nod for us to buy Bumble Bee," said Thiraphong Chansiri, president and chief executive of the world's largest processor of canned tuna.

Thai Union has been trying to acquire Bumble Bee since last year.

However, the acquisition has been suspended due to an antitrust investigation by the Justice Department into the packaged seafood industry including Thai Union subsidiary Tri-Union Seafoods, maker of Chicken of the Sea.

Thiraphong: Still expanding abroad

The company will know on Dec 18 if it can buy California-based Bumble Bee in a deal estimated to be worth $1.51 billion.

Chicken of the Sea has a market share in the US of 17%, while Bumble Bee is even higher at 25%.

Therefore, if Thai Union wants to go ahead to complete the Bumble Bee purchase, it will have to sell off another part of its group.

"To comply with the law, we'll have to sell another company we've acquired, Chicken of the Sea," Mr Thiraphong said.

He said selling Chicken of the Sea would avoid breaking US antitrust rules, which bar any aggressive merger and acquisition that would allow one company to dominate the US market.

He said Thai Union would need to tweak its fundraising plan to buy Bumble Bee.

"Since we're expecting a certain amount of cash from the sale of Chicken of the Sea, we're unlikely to raise huge funds, so the plan has to be slightly rejigged," Mr Thiraphong said.

He said the company would still maintain its plan to have global revenue of $8 billion by 2020 even if it failed to acquire Bumble Bee.

"Regardless of whether we buy Bumble Bee, we'll maintain our plan to acquire more companies to expand our market share and generate higher revenue," Mr Thiraphong said.

TU shares closed yesterday on the SET at 18.50 baht, unchanged, in trade worth 201 million baht.

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