Highland Council has expressed strong reservations to the Competition Commission about the proposed merger of three fish farming companies.
The council had raised concerns about competition
The council said the merger of Pan Fish, Marine Harvest and Fjord Seafood, would reduce competition.
It also said independents could be forced to work for the new company.
Pan Fish has offered to divest itself of parts of the three companies to avoid the commission forbidding the merger from going ahead.
The amalgamation has already been approved in Norway, Canada and Spain.
The joining of Pan Fish, Marine Harvest and Fjord Seafood would give the new company control of 65% of farmed Scottish salmon production.
The Office of Fair Trading has referred it to the Competition Commission because the move could increase salmon prices and have an impact on the Scottish salmon market.