Merger of Hveleyri hf. and Bus Hostel ehf.

The Icelandic Competition Authority (ICA) has examined the acquisition by Hvaleyri hf. of Bus Hostel ehf. Hvaleyri is a subsidiary of Pac1501 ehf. which is wholly owned by Horn III slhf. Hvaleyri‘s market activities consist of real estate operations concerning other Pac1501 ehf. subsidiaries whom are active in the overall market of bus transportation. Bus Hostel operates two hotels in Reykjavík and has an estimated market share of 1% in the market for hotel accommodation in the large Reykjavík area. After an investigation the ICA concludes that this conglomerate acquisition will not give rise to a market concentration which might damage competition. The acquisition is not considered to cause appreciable harm to competition in other ways. Therefore, there is no reason to intervene in this merger on the basis of Article 17 c in the Icelandic Competition Act no. 44/2005.