By letter dated 26 October 2006, the Competition Authority was notified of OMX AB's acquisition of all the shares in Eignarhaldsfélag Verðbréfaþings hf. Eignarhaldsfélag Verðbréfaþings hf. is a company for the ownership of Verðbréfaskráningu Íslands hf. and Kauphöll Íslands hf. Based on the information contained in the merger notification, the Competition Authority considers that OMX's acquisition of all shares in the Holding Company constitutes a merger within the meaning of Article 4. and 17 of the Competition Act no. 44/2005, and the merger is subject to the merger control provisions of Article 17 of the Act, as the turnover thresholds are considered to be met.
The merger document states that the aim of the merger is to increase efficiency and enhance the benefits for shareholders, securities issuers and market participants, as well as to contribute to the further integration of the Nordic securities market. It is anticipated that the merger will, in the long term, make it easier to sell Icelandic securities. The merger of OMX and the Holding Company is said to be a logical step towards the creation of one of the largest securities markets in Europe, which could draw strength from one of the world's leading providers of information technology services. The merger of OMX and the Holding Company will, due to more liquid securities, increase the combined securities company's ability to remain a platform for market participants.
It is stated that the holding company will continue to be a registered Icelandic company with its registered office in Iceland, and that the company will be subject to Icelandic law and the supervision of Icelandic authorities. This is said to be in line with OMX's business strategy. Following the merger, OMX will apply for listing on the Iceland Stock Exchange. It is expected that Icelandic companies will become part of the Nordic exchange at the beginning of 2007, and as a result, Icelandic companies will become more visible on that platform. At the same time, information on the Icelandic market will be distributed alongside other information from OMX, and Icelandic securities will become part of OMX's indices. Indices for Icelandic securities will continue to reflect the development of the Icelandic market.
The Competition Authority's investigation has not revealed any factors that suggest the merger in question is likely to cause a distortion of competition in Iceland. Therefore, there is no reason to take action regarding the merger of OMX AB and Eignarhaldsfélag Verðbréfaþings hf. under Article 17 of the Competition Act.
The decision.
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