Merger of Reginn hf. and Klasi fasteignir ehf.

The Icelandic Competition Authority (ICA) has examined the merger of Reginn hf. and Klasi fasteignir ehf. The companies operate in the market for the leasing of real estate to businesses. Reginn hf. is one of a few large companies operating in the market. After the merger Reginn‘s property portfolio will consist of around 220.000 square meters of real estate. The largest assets of Reginn are, Smaralind which is one of two large shopping centers in the capital area and Egilshöll which is a sports and amusement center in the capital area. In addition they have a diversified portfolio consisting mainly of office and commercial real estates. Reginn is not considered to be in a dominant position of the market, neither before nor after the merger, the market share of the company is assessed to be around 20% by the Icelandic competition authority. The real estate portfolio of Klasi is about 28.500 square meters compared to Reginn‘s 190.000 square meters portfolio pre-merger.

After investigating the facts of the case, the Icelandic Competition Authority has concluded that there are not sufficient grounds to interfere in this merger on the basis of Article 17 of the Competition Act.