Merger of Umbreytingar II slhf., AU 23 ehf. and Hótel Hafnar ehf.

The Competition Authority took a position on the merger of Umbreytingar II slhf., AU 23 ehf. and Hótel Hafnar ehf.

AU 23 is a holding company, but the company has not conducted any operations since it was established. The company is wholly owned by Umbreytingar II slhf., which is an investment fund managed by Alfa Framtaks ehf.

Hotel Höfn runs the eponymous hotel and a restaurant in Höfn, Hornafjörður.

The companies therefore operate in different markets, but in the opinion of the Competition Authority, nothing has emerged during the investigation of the case that gives cause to define the relevant markets differently from how the merging parties have considered them and as has been done in previous decisions of the Competition Authority. As there is no overlap in the activities of the merging parties or companies within their group, nor is the purchaser taking over the activities of a company that produces and/or sells inputs for the other's activities, this is neither a horizontal nor a vertical merger. It is therefore clear that AU23's investment and acquisition of Hotel Höfn constitutes a merger in a corporate group within the competition law context.

The Competition Authority has concluded that there is no indication the merger will prevent effective competition. For this reason, the Authority sees no reason to take action regarding this merger.