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Merger of Hampiðjan and Mørenot

  • Get document
  • Case number: 5/2023
  • Date: 23/2/2023
  • Company:
    • Hampiðjan hf.
    • Mørenot
    • Holding Cage I AS
  • Sectors:
    • Consumer goods, supplies and etc.
  • Policy Area:
    • Mergers
  • Summary

    ICA took a position on the purchase of Hampiðjan hf. on all issued share capital in the company Holding Cage I AS, which is the parent company of the Mørenot Group.

    The merger was duly notified on 12 December 2022, and the statutory deadlines then began to run. The investigation concluded in the first phase on 18 January 2023 with a decision not to intervene.

    The mergin parties mainly operate in the production, sale and service of fishing gear and sea pens. These are international companies with offices around the world.

    Opinions and information were obtained from customers and competitors that did not indicate adverse effects of the merger. At the same time, information indicated that the same market definitions of product and service markets as in the previous decisions of ICA could be continued, with certain caveats. On the other hand, the same information indicated that the geographic markets of the case were narrower than previously considered and that the entire country or even local markets should be targeted.

    ICA’s conclusion on the competitive effects of the merger was that the available data and information that had been obtained indicated that the competitive situation and the effects of the merger were not such that there was a reason for intervention. Further, the effects of the merger would be limited in Iceland, buying power of customers was considerable and foreign competitive forces would be present up to a certain extent.

    However, the merging parties marekt position would be strong after the merger in certain markets and in specific types of fishing gear, which would indicate that possible further consolidation in the fishing gear markets may be the subject to a detailed investigation by the competition authorities in future merger control.