Arion banki hf.'s acqusition of AFL-sparisjóður ses.

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• Case number: 09/2015
• Date: 16/10/2015
• Company:
  • Arion banki hf.
  • AFL Sparisjóður ses.
• Sectors:
  • Financial services
• Policy Area:
  • Mergers
• Summary

  The Icelandic Competition Authority (ICA) has reviewed a merger between AFL sparisjóður ses. (public savings fund) and Arion banki hf. (universal bank). The merger involves Arion banki’s direct acquisition of AFL. AFL is one of the largest public savings banks in Iceland that is still in operation and has branches in the towns of Siglufjörður and Sauðárkrókur. Arion banki is a universal bank with operations across the country. After its investigation the ICA has requested that Arion bank will sell its stock in the savings fund in an open market and secure its independence in operations. It is the ICA’s assessment that this conclusion is satisfactory in light of the saving fund’s limited means which are evident because it does not meet the FME’s requirements for equity ratio.