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Merger of Landfestar ehf. and Eik fasteignafélag hf.

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  • Case number: 23/2014
  • Date: 14/7/2014
  • Company:
    • Eik fasteignafélag hf.
    • Landfestar ehf.
  • Sectors:
    • Specialist service and other services
  • Policy Area:
    • Mergers
  • Summary

    The Icelandic Competition Authority (ICA) has examined the merger of Landfestar ehf. and Eik fasteignafélag hf. The undertakings operate in the market for leasing commercial real estate and are two of the largest companies in the market. The asset portfolio of the merged entity will consists of about 270.000 square meters of commercial real estates, the largest assets of the entity being office buildings at Smáratorg 3 in Kópavogur and Borgartún 26 in Reykjavík. These buildings are two of the largest office buildings in the capital area. In addition the merged entity will have a diversified portfolio of commercial real estate. The entity is not considered to be in a dominant position on the market, neither before nor after the merger as the combined market share of the undertakings is assessed by the ICA to be 20-25% after the merger. The relevant market is leasing of commercial real estate in the capial area to unrelated parties.

    Arion banki hf., the owner of Landfestar ehf., has taken certains actions in order to reduce its influence in the merged entity, such as selling a substantial part of its shares in it. In addition Arion banki hf. has in a formal declaration to the ICA notified its intention of taking further steps in order to diminish the bank‘s influence in the merged entity. Taking this into consideration and with regard to other facts of the case the ICA has deemed that there is no need for intervention in the said merger.