The transfer of all shares in Lyfja hf. (pharmaceutical retail chain) held by Glitnir hf. (bank) to the Icelandic government

• Get document
• Case number: 8/2016
• Date: 28/4/2016
• Company:
  • Lyfja hf
  • Glitnir hf.
• Sectors:
  • Consumer goods, supplies and etc.
• Policy Area:
  • Mergers
• Summary

  The Icelandic Competition Authority (ICA) has reviewed the transfer by Glitnir of all shares in Lyfja hf. to the Icelandic Government. The transfer is a part of so called Assignment agreement between Glitnir and the Central Bank of Iceland, the agreement is part of the government's plan to lift capital controls which apply to the Icelandic Krona. Lyfja is the largest pharmaceutical retailer in Iceland, the company operates 30 pharmacies all around the country, which are marketed under two brands: Lyfja and Apótekið. Within the group is also Heilsuhúsið and Heilsa ehf., their operation consist of import and distribution of various dietery supplements.

  
  The endorsement will not lead to increased concentration in any market. Companies owned by the government are restricted to certain competitive behaviour such as EFTA's State Aid rules and the government's ownership policy. In this case, there is no reson to put further restrictions beyond general rules that apply to state owned companies, also the government estimates to sell Lyfja by 2019.

  
  After an investigation, it is the ICA's assessment that the endorsement will not, in any way; result in a significant distortion of competition in the market. Therefore, there is no reason to intervene in this merger based on Article 17 c of the Icelandic Competition Act no. 44/2005.