Dive Brief:
- Global seafood manufacturer Thai Union Group will no longer be pursuing a $1.5 billion purchase of Bumble Bee Seafoods due to Justice Department antitrust concerns.
- "We have decided to focus our energy on our existing business," according to Thiraphong Chansiri, Thai Union's president. "Thai Union remains committed to the North American seafood market."
- The deal would have put together the second- and third-biggest shelf-stable tuna makers in the U.S. The StarKist Co. is No. 1.
Dive Insight:
The company initially revealed the proposed deal a year ago. Thai Union said that it and Bumble Bee's owner, Lion Capital, came to a mutual decision to stop the acquisition.
The deal marks another failed acquisition following the government's scrutiny, including Sysco's bid for US Foods.
A Krungsri Securities PCL analyst said the deal is a loss for Thai Union, which was looking to bump revenue from an anticipated $4 billion in 2015 to $8 billion by 2020. The Bumble Bee purchase would have brought a 25% revenue uptick, according to the company.
