The Competition Council recently considered the acquisition by Byko hf., Húsasmiðjan hf. and Kaupfélag Skagfirðinga svf. of shares in Steinullarverksmiðjan hf. The acquisition in question is a merger within the meaning of competition law and was examined accordingly. The Competition Council concluded that the acquisition strengthens Steinullarverksmiðjan's market dominance in the production and wholesale distribution of rock wool and related products in Iceland. Furthermore, the Competition Council considers that the joint ownership of the Rockwool Factory by Byko and Húsasmiðjan is likely to restrict competition between the two retail companies. The joint involvement of the competitors, Byko and Húsasmiðjan, in the operation of Steinullarverksmiðjan could lead to consultation or cooperation on prices and other restraints on competition.
The Competition Council considers that there are grounds for intervention in respect of the merger. If the Competition Council considers that a merger of undertakings prevents effective competition, it may annul the merger or impose conditions on it. Discussions between the companies involved in the merger and the competition authorities have led to the parties being prepared to agree to certain conditions for the acquisition. Upon the fulfilment of the aforementioned conditions, the competition authority considers that the merger's harmful effects will be eliminated.
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