The Norwegian producer’s subsidiary Hjaltland is splitting No Catch’s 800 tons of organic salmon production with Salmar and Leroy Seafood-owned Scottish Seafarms under a deal where both paid in the region of £3.6 million (€4.5 million/$7.1 million).

Last year, Grieg produced between 600-700 tons of organic salmon but expects to total 1,000 during 2008.

“The idea is to come to 2,000 tons during next year and 2010,” We strongly believe this is an interesting segment and would like to do a lot as we go along,” said Per Grieg Junior.

Per Grieg Junior, who initially ruled out a bid for the troubled Shetland-based organic cod producer, said his company’s interest in No Catch fluctuated as administrators first tried to sell off the business in one go but were later forced to do so piecemeal.

Details of the deal were announced on Thursday via a Salmar release on the Oslo Stock Exchange something that appeared to catch administrators Grant Thornton by surprise.

Meantime doubts have surfaced over the possibility of finding a buyer for the No Catch organic cod brand.

“The brand remaining remains a challenging one, we are continuing to explore that and if it’s possible to put a deal together we certainly will,” said Grant Thornton joint administrator Daniel Smith, who is running the financial company’s affairs.

No Catch’s cod is still owned by administrators but being looked after under temporary licensing agreements by Grieg Seafood.

Administrators say they are now in discussions to sell off the remaining parts of the business.

These include separate grading systems subsidiary, a hatchery trout business, the company’s mussel sites, the No Catch brand and the cod itself.

Once mature, cod stocks are expected to total 3,400 tons with some licenses extending to 13 months.

Smith said he is hopeful more deals will be announced within the next 10 days.

With No Catch cod being sold in 10 European countries, the company went into administration last month, with little agreement on the reason why. The high flying cod-farming company ended its run some £40 million (€50.2 million/$79.3 million) in debt.

No Catch’s previous owners, led by Karol Rzepkowski, blamed their demise on the tightening of credit, saying former financial backer Kaupthing Bank backed out on a deal to provide necessary funds to keep the business going.

Kaupthing denied Rzepkowski's charge, saying funds were never agreed upon and No Catch was bleeding money and no longer viable.

Grieg eyes European domination of organic salmon