Kaupthing Bank hf.'s acquisition of a 50% stake in Einkaklúbbnum ehf.

The Competition Authority was notified of Kaupþing bank hf.'s acquisition of 49% of the share capital in Einkaklúbbnum ehf. (now Ekort ehf.) in late September 2007. The agreement provided that Kaupþing and Sparisjóður Reykjavíkur og nágrennis would jointly manage the company and hold an equal shareholding. This constitutes a change in control of the kind that constitutes a merger within the meaning of Articles 4 and 17 of the Competition Act No. 44/2005. The merger raised several competition concerns, and it was concluded that conditions should be imposed on it. The conditions stipulate that SPRON, Kaupþing and Einkaklúbburinn will operate as independently as possible from one another. Einkaklúbburinn will be under independent management, and SPRON and Kaupþing will issue credit cards under the e-kort brand name without collaborating with each other. The Competition Authority considers that the conditions are sufficient to remedy the competition problems that would otherwise have arisen from this merger. The merger was therefore approved with these conditions.