The Competition Commission has cleared the merger of fish farming companies Pan Fish and Marine Harvest.

Pan Fish acquired all the outstanding shares in Marine Harvest for €1,325m in March this year but the merger was referred to the Competition Commission by the Office of Fair Trading in July.

At the time, industry sources told The Grocer there was concern among buyers the acquisition would push up Scottish salmon prices and "that too much supply would be in the hands of too few".

However, the Competition Commission ruled the acquisition “may not be expected to result in a substantial lessening of competition in the market for the supply of European farmed Atlantic salmon in the UK".

“Pan Fish is pleased with this final decision,” the company said in a statement. It will close the transaction as soon as possible and the three companies Fjord Seafood, Pan Fish and Marine Harvest will be merged into one.