The acquisition of Reyðarfjarðar Electricity Company by Orkusalan ehf. and RARIK ohf.

The Competition Authority has been considering the acquisition of Rafveita Reyðarfjarðar by Orkusalan ehf. and RARIK ohf.

The Competition Authority concluded that the market relevant to this case is primarily the market for the production and retail sale of electricity on the one hand, and the market for electricity distribution on the other. In the opinion of the Competition Authority, the geographical market for the production and sale of electricity is Iceland, the country as a whole, as the electricity system in this country forms a single network that extends across the entire country. With reference to the discussion in the decision, it is the conclusion of the Competition Authority that the relevant merger will not result in the creation or strengthening of a dominant position, nor will it otherwise significantly impede effective competition, in accordance with Article 17. para. c of the Competition Act.