Last July, the Competition Authority annulled a merger involving the takeover by Stjörnugrís of certain assets of the companies that operated the Brautarholt and Grísagarður pig farms. The pig farms had come into the ownership of Arion Bank after the companies that ran them went bankrupt. It was considered that with Stjörnugrís's purchase of the pig farms, the company would have gained a dominant market position in the pig farming market and strengthened its dominant market position in the pig slaughter market. This, together with the group's strong position in the egg market, would also strengthen its position vis-à-vis feed suppliers, meat processors and grocery stores, see decision of the Competition Appeals Board no. 1/2011. The Competition Authority did not consider it proven that the conditions of the rules on a company in distress were met. These rules provide for a merger to be authorised on the grounds of a company's serious financial difficulties.
Stjörnugrís and Arion Bank appealed the decision of the Competition Authority to the Competition Appeals Board, making various observations on the authority's procedure and conclusion. In a ruling published today, the appeal board upholds the decision of the Competition Authority. The board considers that its proceedings were proper. The board also finds that Stjörnugrís and Arion Bank have not demonstrated that the rule This would apply to a company on the verge of collapse.
See the decision for details No. 27/2011 since July last.
See the decision of the appeal board for further details. No. 7/2011.
"*" indicates required fields
