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The acquisition by Reitar fasteignafélag hf (real estate Company) of ten commercial real estate companies run by Stefni hf (real estate conglomerate)

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  • Case number: 7/2016
  • Date: 28/4/2016
  • Company:
    • Reitir
    • Stefnir hf.
  • Sectors:
    • Financial services
  • Policy Area:
    • Mergers
  • Summary

    The Icelandic Competition Authority has reviewed the acquisition by Reitir fasteignafélag hf. of ten commercial real estate companies held by Stefnir hf. This is a horizontal merger and Reitir's portfolio of commercial real estates will be 450.000 square meters after the transaction. Reitir is the largest company in the market for leasing of commercial real estate to parties unrelated to the lessor. Their largest assets are Kringlan shopping center, Laugarvegur 182, Höfðabakki 9, Holtagardar shopping center in addition it has a diversified portfolio of properties in terms of location and types. This transaction entails an investment in nine properties in Reykjavík and one hotel property in Akureyri, in total this is 37.500 square meters of commercial real estates.

    The merger is a continuation of the acquisitions by the three largest real estate companies of smaller companies in the market. A further concentration in the market is likely to face the ICA's further scrutiny; the concentration level has increased significantly in most recent years.

    After an investigation, it is the ICA's assessment that the merger 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.