The Competition Authority has today published a decision No. 23/2014, Merger of Landfest ehf. and Eikar Fasteignafélags hf. The companies are engaged in the leasing of commercial property and, following the merger, the combined company will become the country's second-largest real estate company after Reit, with a 20-25% market share of the market for leasing commercial property in the capital region to unrelated parties. The value of the company's property portfolio will be around 60 billion króna, comprising approximately 270,000 square metres of commercial property. The portfolio consists mainly of retail and office premises in the capital region.
Arion banki hf. has been the owner of all the shares in Landfesti and, in conjunction with the merger of Eik and Landfesti, the bank will sell a significant portion of its shares in the merged company. Furthermore, the bank will take certain measures that will further reduce its influence in the company. Following the merger, the combined company Eikar and Landfest will be widely held by pension funds, private investors and other professional investors. Due to the measures taken by Arion Bank and the statement the bank has submitted to the Competition Authority, there is no reason for the authority to intervene in the merger.
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