Merger of Ardian and Míla approved with conditions

The Icelandic Competition Authority (ICA) has completed its
Investigation into the acquisition by Ardian France of all shares of Míla, a
A subsidiary of Síminn. Míla operates telecommunications infrastructure.
nationwide in Iceland and is the largest and most important wholesaler of
Telecom services in Iceland. Síminn is the largest retailer of telecom services.
in Iceland and, thus, the largest buyer in wholesale. Ardian is a France-based, independent private
equity investment company.

Consequently, it is of great importance to the Icelandic economy and
consumers that Síminn's sale of Míla is managed in a way that does not harm
competition in the vital markets in question.

ICA considers the changed ownership of Míla and its detachment from
Síminn a positive step for competition in the telecommunications market. On the
On the other hand, along with the sale, the parties involved made a long-term
a wholesale agreement which would have created unprecedented barriers to
competition. In addition, telecoms systems and wholesale operations were transferred
to Míla in relation to the merger, reinforcing and potentially strengthening Míla's
position. The aforementioned concerns called for ICA's intervention.

With a settlement signed on 15th September, ICA has approved the merger.
with conditions. The settlement entails substantial changes to the wholesale agreement
between the parties involved. In addition, Míla has committed to certain conditions
for its operation, and Síminn has signed a statement on the company's
disintegrated operations and commercial independence. With those commitments,
ICA believes the potential harmful effects and barriers to competition have
been sufficiently removed or limited, laying a solid foundation for healthy
Competition for the benefit of consumers, businesses, and the community.

Páll Gunnar Pállsson, Director General at the Icelandic Competition Authority
Authority:

„Competition in the construction
and the operation of infrastructure has secured the country a favourable position on
the field compared to others. In the times of transition that lie ahead, it will
It is decisive for Iceland's competitiveness that the government and industry
foster competition in this area.

The entry of an independent
infrastructure investor into the Icelandic market and the severing of the
The ownership relationship between Síminn and Míla are suitable for fostering
competition if things are handled well. In order for this to happen, the
The conditions and terms of the transaction must support competition. The
The settlement presented here is intended to ensure that.“

The settlement, in Icelandic, can be found here.

For further information or requests for comments, please contact Haukur.
Harðarson (haukur.hardarson@samkeppni.is).