Merger of SalMar ASA and NTS ASA

This decision addresses the takeover of NTS by SalMar, which would have placed Arnarlax and Arctic Fish, salmon aquaculture companies in the Westfjords, under the same ownership. The investigation concluded that there were no grounds for intervention in the matter.

The merger partners and their subsidiaries are engaged in aquaculture, primarily in Norway but also in Iceland. Together, the companies control almost half of the production capacity under the issued licences for sea-cage farming in Iceland.

The merger was duly notified to the Competition Authority on 22 July 2022. Shortly afterwards, the merger was notified to the European Commission, but prior to that, longer preliminary talks had taken place on that forum, as far as the Competition Authority can ascertain.

It was the conclusion of both the Commission's investigation and the Competition Authority's investigation that Icelandic farmed salmon constitutes a distinct product market. The merger, if left unchallenged, would have led to a significant distortion of competition, as the combined company would have become by far the largest producer of Icelandic salmon for the EEA market. Such a merger could have resulted in higher prices and less choice for traders in Icelandic salmon. 

In response to this competitive disruption, SalMar offered in its negotiations with the Commission to submit to conditions, including the sale of its NTS operations in the country, specifically Arctic Fish. Following a market test of such a proposal for conditions and the sale of a business unit, it was concluded that they would prevent competition distortion resulting from the merger. The European Commission took a decision to this effect in case no. M.10699 – Psalms / NTS.

The Competition Authority considered that the conditions would fully prevent the anti-competitive effects that the merger would otherwise have had in Iceland. The Competition Authority therefore considered that intervention was not necessary and did not need to take action regarding the merger following the investigation.