Merger of Johan Rönning Ltd. and G.E. Jóhannsson's Chemicals Ltd.

The Competition Authority has been reviewing the merger of Johan Rönning Ltd. and G.E. Jóhannsson's Chemical Wholesale Ltd. Johan Rönning imports electrical goods and sells them wholesale in this country. The company also operates its own retail shop where electrical goods are offered to general consumers. Efnissalan specialises in the import of materials for central heating and drinking water piping.

 This concerns a merger by way of acquisition whereby Johan Rönning purchases all the stock of Efnissala G.E. Jóhannsson, the company's current assets and other operating assets, computers and inventory systems, business relationships, the right to the seller's trade name, etc. Following an investigation and in light of the evidence, the Competition Authority is of the opinion that the merger will not prevent effective competition in the relevant markets and will not lead to the creation or strengthening of a dominant position. Furthermore, the merger does not otherwise lead to a significant distortion of competition in the market. Therefore, there are no grounds to take action regarding the merger under Article 17(c) of the Competition Act No. 44/2005.