Icelandic travel agency withdraws merger notification regarding its acquisition of Heimsferða's operations and requests further discussions on possible conditions.

The Competition Authority has recently had under detailed
Investigation into the proposed acquisition by the Icelandic Tourist Board (ÍTB) of the operations of Heimsferðir.
The investigation was at a late stage, but the Competition Authority has now withdrawn its merger notification.

Does the withdrawal imply that the matter in question is concluded without
decision and that the merger of FÍ and Heimsferða cannot be implemented
unmodified.

The merger parties have, however, informed the Competition Authority
that they intend to announce the merger again on a revised basis and propose
conditions that can eliminate potential barriers to competition arising from the merger. It is about
to discuss proposals that were not put forward at the previous stage of the proceedings and has supervision over the supervision
because no opportunity is given to take a position on them.

Background information

Mergers above certain turnover thresholds must be notified.
The competition authority must take a position on them within
specified statutory deadlines. A merger notification for this matter was received
To the Competition Authority, 21 January 2021. Has the Authority's investigation been
extensive, but due to the merger partners' perspectives, it was necessary to take, among other things
definition of the markets in the case for detailed investigation, e.g. by
to conduct a survey among the associations' customers.

The Competition Authority published its preliminary assessment to the merger parties.
in the statement of objections of 10 June 2021. The merging parties were informed of this
The Competition Authority's preliminary assessment that the merger of FÍ and Heimsferðir would be harmful.
competition pursuant to Article 17(c) of the Competition Act No. 44/2005. The merger parties
given the opportunity to comment on the contents of the objection document and to put forward ideas about
possible conditions.

The merger parties objected to the Competition Authority's preliminary assessment, but
also put forward proposals for conditions which the Competition Authority assessed
insufficient, following a preliminary investigation.

By withdrawing the merger notification, the merging parties
prevent potential intervention by the Competition Authority
annulment of a merger. Instead, the merging parties intend to test whether it is possible
to authorise the merger on the basis of new proposals to conditions that can be fulfilled
possible barriers to competition. The handling of the matter will be expedited as far as possible.
is.