Merger of Kaupfélag Skagfirðinga svf. and Gunnar ehf.

The merger case concerned the acquisition by Kaupfélag Skagfirðinga Ltd. of all the shares in Gunnar Ltd. The companies are competitors in the production and wholesale of pure mayonnaise and ready-made cold sauces. The merger investigation concluded that a dominant position would be created in the market for the production and sale of pure mayonnaise to grocery stores, and the production and sale of other ready-made cold sauces to grocery stores and large-scale customers. Furthermore, the merger would lead to a further distortion of competition, as the competitors were close and the competition that would disappear was significant. In addition, barriers to entry would exist and buyer power would not be sufficient to offset the harmful effects of the merger. The Competition Authority therefore considered it necessary to annul the merger.