Pan Fish, the Norwegian fish farming group, has announced that it will sell its Scottish operations in 2007 due to competition concerns as a result of a merger with Dutch company Marine Harvest. 

The proposed £800m merger had caused concern with the French authorities over the farming of salmon in Scotland, despite UK regulators approving the deal. The addition of Marine Harvest's operations would have brought Pan Fish's market share in the country to around 65%. 

Oslo-based Pan Fish said that while it did not agree with the French position, it has offered to divest Pan Fish Scotland in order to gain approval for the merger. The company added that as the Scottish operations only represented around 4 percent of planned production for 2007, the divestment would have a very limited effect on the group. 

Options for Pan Fish Scotland include being run as a stand-alone operation with a separate listing on the Oslo stock exchange, or a sale to a company with interests in or a desire to enter the Scottish fish farming market. It is thought unlikely that the eventual buyer will be Scottish.