The acquisition by Vátryggingafélag Íslands hf. of all shares in Fossar Investment Bank hf.

This decision concerned the acquisition by Vátryggingafélag Íslands hf. („VÍS“) of all the shares in Fossum fjárfestingarbanki hf. („Fossar“), which constituted a merger within the meaning of Article 17 of the Competition Act no. 44/2005. The merger was formally notified to the Competition Council on 23 May 2023. The notification obligation became effective on 14 June 2023, and the deadlines began to run on 15 June 2023.

The Competition Authority's investigation revealed that the effects of the merger would primarily be on the asset management market. The other markets in question would not be subject to negative horizontal effects, as the case stood, nor would the merger's potential vertical or synergistic effects be detrimental to competition. It is clear that the combined undertaking could become a powerful player in the asset management market. It is also established that there are other powerful competitors in that market, as noted in the merger filing.

In this regard, it may be noted that in the decision of the Competition Authority no. 5/2019 Merger of Kviku bank hf. and Gamma Capital Management hf. The conclusion of the supervision was that the combined market share of the four commercial banks in the asset management market as a whole was that they held a combined 80-90% of the market. There was no indication that this situation had changed in any significant way. It can be assumed that clients in asset management, particularly institutional investors, provide competitive restraint as purchasers of the relevant services. It was also noted that no negative comments regarding the merger were received from market participants.

The Competition Authority concluded that there were no grounds for intervention in the transaction. Thus, there were no indications to suggest that a dominant market position was being created or strengthened in the relevant markets, or that competition would otherwise be significantly impaired.