Merger of Alfa framtaks ehf., Umbreytingar II slhf., AU 24 ehf. and Reykjafells ehf.

The Competition Authority took a position on the merger of Alfa Framkvæmdasjóður ehf., Umbreytingar II slhf., AU 24 ehf. and Reykjafell ehf.

AU 24 ehf. is a holding company but has not conducted any business since it was established and does not hold shares in other companies. The company is wholly owned by Umbreytingar II slhf., which is an investment fund managed by Alfa framtaks ehf.

Reykjafell ehf. operates a wholesale business offering complete solutions in electrical and lighting equipment for the corporate market.

The companies therefore operate in different markets, and in the opinion of the Competition Authority, there is no overlap in the activities of the merging parties or companies within their group, nor is the purchaser taking over the operations of a company that produces and/or sells inputs for the other's operations, as this does not constitute either a horizontal or a vertical merger. It is therefore clear that the investment and acquisition by AU 24 ehf. of Reykjafell ehf. constitutes a merger by acquisition in the competition law sense.

The Competition Authority has concluded that there is no indication the merger will prevent effective competition. For this reason, the Authority sees no reason to take action regarding this merger.