The Competition Authority received a merger notification regarding the acquisition by Síldarvinnslan hf. of all shares in the fishing company Bergur-Huginn ehf. Bergur-Huginn operates a fishing business in Vestmannaeyjar, and Síldarvinnslan is one of the country's most powerful fishing companies, also operating a land-based processing business.
The merger provisions of competition law are intended to ensure that market concentration resulting from a merger does not distort competition. The provisions of the Fisheries Management Act also apply in this case, which are intended, among other things, to ensure competition in the fishing industry by preventing fishing rights from being concentrated in a few hands.
The largest owners of Síldarvinnslan are companies that are also involved in fishing and fish processing. On the one hand, Samherji hf. and on the other, Gjögur hf. Both companies have representatives on the board of Síldarvinnslan, but neither of them owns a majority stake in the company. In light of this ownership, the Competition Authority decided to expand its investigation into the merger and assess whether Samherji (or, as the case may be, Samherji and Gjögur together) had control over Síldarvinnslan. If that were the case, the notified merger would in effect have involved a merger of Bergs-Hugin with Síldarvinnslan, Samherji and Gjögur. Together, these companies have a greater share of the quota than is permitted by the Fisheries Management Act. Both Samherji and Síldarvinnslan have stated that Samherji does not have control over Síldarvinnslan.
The Competition Authority's conclusion, decision No. 10/2013, is that it has not been established that Samherji and Gjögur exercise control over Síldarvinnslan within the meaning of competition law. Accordingly, the case concerns only the competition-related effects of the merger resulting from Síldarvinnslan's acquisition of Bergi-Hugin. The Competition Authority considers that this merger does not distort competition. In this regard, it is particularly significant that the merger does not affect Síldarvinnslan's strong position in the pelagic fish market and that the companies are not competitors in fish processing. This concludes the Competition Authority's investigation into the merger between Síldarvinnslan and Berg-Hugin.
The above conclusion regarding control over Síldarvinnslan leads to the finding that Síldarvinnslan, Samherji and Gjögur are competitors within the meaning of competition law. The investigation of the case has revealed significant cooperation between these companies in shipping, fish processing and the sale of products. Furthermore, Samherji and Gjögur have representatives on the board of directors of Síldarvinnslan. In light of this, the Competition Authority has concluded that it is inevitable to initiate a new administrative proceeding to examine whether Síldarvinnslan, Samherji and Gjögur have breached the competition law prohibition on anti-competitive cooperation between competitors.
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