Merger of Ísfélag Vestmannaeyja and Rammi approved
The ICA recently took a position on the merger of Ísfélag Vestmannaeyja hf. and Ramma hf. The merger was duly notified on 10 February 2023, and the statutory deadlines then began to run. The investigation ended on phase I on 17 March 2023.
It was the conclusion of the ICA that there were no grounds for intervention. There were no evidence to assume that a market dominant position was being formed or strengthened in the markets of the case or that competition would be disturbed in any other way.
According to information in the case, the merging parties would have over 8% of market share in terms of quota (ísl. aflahlutdeildir), which is below the 12.0% maximum according to Act no. 116/2006 on fisheries management. Other information in the case regarding markets for demersal fishing and pelagic fishing, processing of demersal fish, sale of demersal fish on the fish market, direct exports of demersal fish and allocated quota for shellfish and crabs did not warrant further investigaton.
The decision deals with the interaction between competition laws and provisions on maximum quota in the Act on Fisheries Management. It is the task of the Fishery Agency to follow up on compliance with the provisions of the Fisheries Management Act. It was stated in the case that the merging party's quota exceeded the maximum according to the Fisheries Management Act regarding capelin, but it was declared in the case by the merging parties that measures would be taken to bring the quota below that limit in accordance with the Fisheries Management Act no. 116/2006.
Having said that, the ICA does not carry out investigation or enforcement in relation to the Fisheries Management Act. The Fishery Agency commented on the case and did not make any observation on the merger.
The decision (10/2023), in Icelandic, can be accessed here.