Investment by S38 slhf. in shares in Íslandshótel hf.

The Icelandic Competition Authority (ICA) has been reviewing an investment of S38 slhf. in Íslandshótel hf. The transaction is notified on the basis of that it leads to changes of control of Íslandshótel, after the transaction S38 will have joint control over Íslandshótel along with a private investor. Íslandshótel operates several hotels around the country and is one of the leading companies in the domestic hotel sector. Data in the case show that there are several participants in the market and the merger will neither give rise to a dominant posistion nor strenthening of a dominant position in any market. Futhermore the merger will not lead to an increased concentration of the market as S38 does not have an operation in the market prior to the merger. After ICA‘s investigation it is the assessment of the ICA that there is no reason to intervene in the merger.