Resolution search: Enter a word and/or choose from the boxes bellow

Decisions

Merger of Fagkaup ehf. and Jóhann Ólafsson & co ehf

  • Get document
  • Case number: 36/2025
  • Date: 18/11/2025
  • Company:
    • Fagkaup ehf.
    • Jóhann Ólafsson og Co. ehf.
  • Sectors:
    • Constructions
  • Policy Area:
    • Mergers
  • Summary

    The Icelandic Competition Authority reviewed Fagkaup ehf.’s acquisition of all shares in Jóhann Ólafsson & Co. ehf. The merger, notified in August 2024, raised concerns about potential anti-competitive effects. The investigation revealed overlaps in wholesale markets for light bulbs, LED products, specialized lighting equipment for street lighting, and a broader electrical goods market for professionals. The combined entity would hold over 50% market share in light bulbs and LED products and over 70% in street lighting, indicating a presumption of dominance. Competitors expressed concerns about foreclosure and increased concentration.

     

    Given Jóhann Ólafsson’s declining competitive strength, the case was resolved through a settlement imposing conditions:

    1. Wholesale supply obligations for LedVance/OSRAM light bulbs on fair and non-discriminatory terms.
    2. Divestiture of a supplier relationship to maintain competition in street lighting.

    With these remedies, the Authority approved the merger.