The merger of Kjarnafæði hf. and SAH afurðir ehf.

The Icelandic Competition Authority has reviewed the merger between Kjarnafæði hf and SAH afurðir ehf. Kjarnafæði´s main activity is meat processing for the retail market where as SAH afurðir operates a slaughterhouse for sheep and large animals and provides meat for the processing market in wholesale where Kjarnafæði is the firms main customer.

This involves a vertical merger as Kjarnafæði purchases 51,55% share of Sölufélag Austur-Húnvetninga in SAH afurðir which comes in addition to the firms previous 41,85% share in SAH afurðir. The Competition Authority in Iceland came to the conclusion that the merger does not not distrupt competition in a severe manner and that there was no reason to interfere on the basis of Article 17 of the Competition Act.