Purchase of a stake in Íslandshótel hf. by S38 slhf.

The Competition Authority has been reviewing the investment by S38 slhf. in Icelandhotels. This is a notifiable merger, as the investment results in a change of control whereby S38 will jointly control Icelandhotels with a private investor. Icelandhotels operates hotels across the country and is one of the most significant players in that market. The case file shows that many parties operate in the relevant market and that neither a dominant position is being created nor an existing one strengthened. Therefore, the merger will not lead to an increase in market concentration, as S38 does not operate in this market prior to the merger. Following an investigation by the Competition Authority, it is concluded that there is no reason to take action regarding this merger.