Merger of MP Bank hf. and Straumur Investment Bank hf.

The Competition Authority has been reviewing the merger of MP Bank hf. and Straumur Investment Bank hf. MP Bank is both a commercial and investment bank, whereas Straumur operates exclusively as an investment bank. Both companies operate under the Financial Undertakings Act No. 161/2002. In the markets in which the merging parties operate, they compete, among others, with three universal banks, each of which is significantly larger than the combined bank of the merging parties. There is therefore a significant difference in the financial strength of the combined bank and each of these large banks. Following an investigation, the Competition Authority's conclusion is that there are no indications that the merger will lead to the creation or strengthening of a dominant position for the merging parties in any market. Furthermore, it does not appear that competition in the markets will otherwise be significantly impaired. The Competition Authority therefore sees no reason to take action regarding this merger.