Purchase of Sigurbjörn ehf by Rammi hf

By letter dated 19 September 2019, the Competition Authority was notified of the proposed acquisition by Rammi hf. (Rammi) on all the shares in Sigurbjörn ehf. (Sigurbjörn). In the opinion of the Competition Authority, the aforementioned transaction constitutes a merger which is subject to notification requirements under Article 17a of the Act.

 Rammi's operations consist of prawn processing in Siglufjörður and fish processing in Þorlákshöfn. The company owns the freezer trawler Sólberg, and processing takes place on board her. Sigurbjörn operates a fish processing plant in Grímsey. Whole fish is also resold by the company's boats at the domestic fish market.

 The merger filing states that the activities of both merging parties relate to fisheries, i.e. the market for fishing off Iceland, as well as fish processing and the sale of seafood products. The companies' activities are therefore in the same sector, and it is a case of a horizontal merger.

 According to the Fisheries Directorate on the allocation of the total catch by TAC for the 2019/2020 fishing year, it can be assumed that after the merger, the merger parties' total catch from the total quota allocation would be such that the merger of the companies would not lead to the creation or strengthening of a dominant market position in the market for bottom-fish fishing off Iceland.

 In light of the evidence, the Competition Authority has concluded that Rammi's acquisition of Sigurbjörn does not provide grounds for action, such as intervention in the form of annulment or the imposition of conditions.