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Skeljungur ehf.‘s acquisition of all shares in Búvís ehf.

  • Get document
  • Case number: 13/2024
  • Date: 5/6/2024
  • Company:
    • Skeljungur ehf.
    • Búvís ehf.
  • Sectors:
    • Consumer goods, supplies and etc.
  • Policy Area:
    • Mergers
  • Summary

    With this decision, the ICA addresses Skeljungur hf.'s acquisition of all shares in Búvís ehf., constituting a merger under Article 17 of the Competition Act No. 44/2005. The ICA concludes that this merger would remove an important competitor from the fertilizer market, which has provided competitive pressure on larger firms to the benefit of farmers. Therefore, the merger must be annulled.

    Skeljungur Overview: Part of SKEL investment group, one of Iceland's largest conglomerates, operating in fuel, groceries, electricity, and pharmaceuticals, with total assets close to 50 billion ISK and equity of 37 billion ISK.

    Búvís Overview: Specializes in agricultural supplies, including fertilizers, with a strong presence in northern Iceland and 2022 revenue of 1.7 billion ISK.

    Harmful Effects: The investigation showed harmful impacts on the fertilizer import and sales market, with fertilizer being a major cost for farmers. Farmers' weak bargaining position and financial difficulties mean they can't offset the merger's effects.