Seafood producer Thai unio (TU) Group is exiting the joint venture (JV) that was established with Saudi Arabian food company Savola.

TU partnered with Savola in 2015 to offer sustainable seafood products to consumers in the Middle East.

In its filing, TU said that it will sell its shares in the JV, as the business did not perform according to expectations.

Savola will acquire the JV stake held by TU, alongside its oils division Afia Arab Food Company.

The financial details of the deal have not been disclosed by the companies.

Until the completion of the agreement, TU will hold 50% of shares in SIC2, which itself holds 80% of SIC1 and holds 10% of shares directly in SIC 1.

These business entities are collectively known as the SIC Group (SIC), which is a retail-focused fish and seafood business operating in the Middle East.

TU’s announcement of the JV exit comes as it released its 2020 financial results, which saw its sales increase by 4.9% to THB132.4bn ($4.41bn).

Last October, TU announced that it was planning to invest in new food-tech companies through its venture fund.

Launched last year with an initial commitment of $30m, the venture fund focuses on alternative protein, functional nutrition, and value chain technology start-ups.

TU had then noted that it would invest in Alchemy Foodtech, Manna Foods, and HydroNeo, which are part of the first cohort from SPACE-F, Thailand’s first food-tech incubator and accelerator programme.