Merger of Flóra Hotels ehf. and 201 hótel ehf.

The Competition Authority approved the acquisition by Flóra Hotels ehf. of all shares in 201 Hotel ehf. Flóra is a private limited company that holds operating companies which run hotels under different brands. 201 Hotel is the lessee and operator of a hotel in the property at Hlíðarsmári 5-7 in Kópavogur. The merger has little effect on the market for hotel accommodation in the capital region.

The merger filing states that, given the limited market share of the merging parties, they consider the impact of the merger on the market for hotel accommodation in the capital region to be limited, if any. Similarly, it is clear that the merger will not create or strengthen a dominant market position.

In light of the available evidence and the Competition Authority's investigation, there are no indications that the merger will lead to the creation or strengthening of a dominant position, or that competition will otherwise be significantly distorted. In light of the above, the Competition Authority finds neither grounds for intervention in this matter nor cause for further investigation into the potential effects of the merger, and therefore concludes the proceedings at the first phase.