Purchase by Prentmet ehf of part of the operations and assets of Oddi Printing and Packaging ehf

The Competition Authority has been handling a merger concerning the acquisition by Prentmet ehf. of part of the operations and assets of Oddi Printing and Packaging ehf. The Competition Authority received a satisfactory notification of the merger on the 20 June 2019. 

According to its articles of association, Prentmet operates a printing press and packaging production facility at Lynghálsi 1 in Reykjavík. The company's purpose, according to its articles of association, includes printing, print production, photocopying, advertising, and the sale and import of related products. Prentmet offers complete printing solutions and specialises in general printing, book printing, labels and packaging. Prentmet is owned by Fyrirhyggja ehf., which also holds a 50% stake in the company Umbúðir og ráðgjöf ehf.

The printing house Oddi was founded for printing but has also been producing and importing packaging in recent years. According to its articles of association, Oddi's purposes include the manufacture, processing and sale of packaging, the operation of a printing works, services for the printing and packaging industry, and related activities. According to the merger agreement, Oddi is majority-owned by Kristinn ehf, a subsidiary of Fram ehf.

According to the merger agreement, Prentmet is acquiring Oddi's printing operations and box manufacturing. Following the merger, however, Oddi will continue to operate under the name Kassagerðar Reykjavíkur for the import and sale of packaging, including boxes.

The Competition Authority defined the product markets in this case as the market for simple printing, specialised printing, and for packaging made of corrugated board. The geographical market was Iceland. The Competition Authority did not consider that a dominant position would be created or strengthened by the merger, not least in light of market share, international competition and foreign competitive pressure, buyer power, and the fact that Oddi would remain a competitor in the packaging market. The Competition Authority raised concerns about the commercial relationship between the merging parties post-merger and the scope of the prohibition on competition, but the parties responded with additions and amendments to the underlying merger filing. In light of all the above, the Competition Authority approved the merger without intervention. The merging parties' arguments concerning companies in decline were not considered.