Governor wants scrutiny of Maruha-Nichiro deal


Monday, July 02 2007
Unalaska, AK – Governor Sarah Palin has written a letter to two federal agencies asking that they thoroughly review a proposed merger between two large Japanese seafood companies.
The Maruha Group and the Nichiro Corp., the largest and third-largest seafood companies in Japan, respectively, announced that they planned to join forces last December. The deal is an important one for Alaska, because it would consolidate Peter Pan Seafoods, Alyeska Seafoods, Westward Seafoods and Golden Alaska Seafoods under a single company.
The letter the governor sent last month to the Department of Justice and the Federal Trade Commission restates many of the concerns expressed by state Fish & Game Commissioner Denby Lloyd in April.
The state is worried that the merger will create a company so big that it will exert serious pressure on the prices Alaskan fishermen are paid for pollock and crab. Palin also expressed concern in her letter that the merged companies would consolidate their onshore processing operations in Unalaska, shutting down smaller plants that villages like King Cove depend on for their local economies.
From his seat on the North Pacific Fishery Management Council, Denby Lloyd made a motion in April to have the council review the merger plans, but was voted down seven to three. Maruha and Nichiro expect to finalize the deal in October.