Purchases of shares by SÍA III Ltd. in Stál í stál ehf.

The Competition Authority has been considering the acquisition by SÍA III Ltd. of 70% shares in Stál í stál Ltd. In connection with the investment in the company, SÍA III and SA Ltd. (the seller) enters into a shareholders' agreement which results in these companies jointly exercising control over Stál í stál. The merger filing states that SÍA III's business is investment activity and its objective is to invest in sound and profitable companies. SÍA III is a joint-stock company and its shareholders are mostly professional investors, mainly pension funds. Based on the management agreement between SÍA III and Stefni, the company has extensive involvement with the fund, and strong arguments suggest that Stefni exercises control over the fund for the purposes of competition law. Stefnir is a subsidiary of Arion Bank and is the country's largest fund management company, with around 35 billion króna under active management. 

The Competition Authority considers it necessary to impose conditions on the merger in question. The conditions are intended to ensure the independence of Stál í stál as a competitor in the market vis-à-vis Arion Banki. Furthermore, specific provisions are laid down for the treatment of confidential information for those parties who may hold shares in other companies operating in related competitive markets.