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Merger of Vinnslustöðin hf., Útgerðarfélagið Ós ehf. og Leo Seafood ehf.

  • Get document
  • Case number: 13/2023
  • Date: 12/4/2023
  • Company:
    • Vinnslustöðin hf.
    • Útgerðarfélagið Ós ehf.
    • Leo Seafood ehf.
  • Sectors:
    • Consumer goods, supplies and etc.
  • Policy Area:
    • Mergers
  • Summary

    The ICA took a position on the merger of Vinnslustöðin hf. (”VSV”), Útgerðarfélagið Ós ehf. (”Ós”) and Leo Seafood ehf. (”Leo”).

    The merger was duly notified on 28 February 2023, and the statutory deadlines then began to run. The investigation ended on phase I on 4 April 2023.

    According to information in the case, the merging parties would have almost 7% market share in cod-kilos, which is below the 12% maximum according to Act no. 116/2006 on Fisheries Management.

    It was stated in the case that there is a considerable relationship between VSV and FISK Seafood ehf. ("FISK Seafood"), which are competitors. In the merger notice, it was stated that FISK Seafood has almost 33% shareholding in VSV. Accoding to information obtained from merging parties, it was also informed about the cooperation of these companies in fishing and processing of mackerel. It also turned out that the assistant director of Kaupfélag Skagfirðinga, which is the owner of FISK Seafood, sits on the VSV board.

    In this case, no formal position was taken as to whether the relationship in question could lead to the conclusion that control had been established beyond what had been informend in the merger notification. However, ICA looked at possible wider control when assessing the effects on competition of the merger. In this regard, it should be mentioned that according to information from the Icelandic Fisheries Agency, the merging parties and FISK Seafood would control 12.33% of the market share in cod-kilos. It is the task of the Icelandic Fisheries Agency to follow up on compliance with the provisions of the Fisheries Management Act on maximum market share in cod-kilos and also assess whether the parties are related within the meaning of the Fisheries Management Act no. 116/2006. The Icelandic Fisheries Agency commented on the case and did not comment on the merger.

    ICA's conclusion in this case was that there were no grounds for intervention under the Competition Act, regardless of reported control or possible wider control.