The Competition Authority has annulled a merger planned through the acquisition by Samkaup hf. of two stores belonging to Basko verslanir ehf. in Akureyri and Reykjanesbær. The Competition Authority is of the opinion that the acquisition would have significantly impaired competition in these specific areas. Thus, the number of actual competitors would have been reduced from three to two in Akureyri and from four to three in Reykjanesbær. The merger would have been to the detriment of consumers, as is further explained in a detailed decision . Among other things, the Competition Authority conducted a consumer survey at shops in these locations to assess competition in the relevant areas.
The Competition Authority has previously authorised Samkaup's acquisition of the assets of 12 Basko stores, see decision no. 29/2018. In that case, which originally concerned 14 stores, the Competition Authority indicated at the very early stages of the case that it appeared to it that the merger would not have a detrimental effect on competition in the capital region, but that there was a likelihood that competition would be harmed in local areas, i.e. particularly in the South-West and in Akureyri.
The investigation of the case strengthened the authority's assessment. The merging parties then decided to exclude the stores in Akureyri and Reykjanesbær from the original agreement. On that basis, the Competition Authority was able to take a position on Samkaup's acquisition of 12 Basko stores, pursuant to the aforementioned decision. Subsequently, the merging parties notified Samkaup's new acquisition of the two remaining Basko stores. That acquisition is the subject of this case.
The aforementioned acquisition by Samkaup of the Basko stores in the capital region has strengthened Samkaup's position as the third-largest competitor in the grocery market. However, this must not come at the expense of consumers in Reykjanesbær and Akureyri. It was therefore unavoidable to annul the merger to that extent.
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