Merger of Alfa Framtaks hf and Lyfja og heilsu hf

The Competition Authority took a position on the merger of AU 26 ehf., a holding company owned by a fund managed by Alfa Framtak hf. („Alfa Framtak“), and Lyfja og heilsa hf. („Lyf og heilsa“). Alfa Framtak is an independent operator of specialised funds running two venture capital funds, while Lyf og heilsa operates pharmacies nationwide under the names Lyf & heilsa, Apótekarinn, Garðs Apótek and Apótek Hafnarfjarðar.

The merger will not result in the concentration of the pharmacy market, as the merging parties operate in different markets. On the other hand, companies in the Alfa Framtaks group serve pharmacies in the pharmacy market, including Lyf og heilsu and many of its competitors. It is therefore primarily a case of vertical and conglomerate mergers.

Following an investigation into the merger, the Competition Authority concluded that there was no reason for intervention, as there were no indications that a dominant position was being created or strengthened, or that the merger would otherwise lead to a significant distortion of competition. Furthermore, the merging parties had informed that non-compete clauses in pharmacists' contracts were no longer in place and would not be permanent under the company's rules.