Purchase of shares in Raufarhól ehf. by Arctic Adventures hf.

The Competition Authority has been reviewing the acquisition by Arctic Adventures hf. of shares in Raufarhóll ehf. The merger filing states that Arctic Adventures is a limited company established for the purpose of replacing Straumhvarf hf. as the parent company of the group. Prior to this merger, Arctic Adventures held a 36.54% stake in Raufarhól ehf., but following the acquisition, it will hold a 90.38% stake in the company. The merger document states that both merging parties are engaged in the sale and operation of organised tours and leisure activities, directly to tourists, in both wholesale and retail. It also states that the merging parties operate the majority of their own tours.

The Competition Authority concluded that it was possible to divide markets into sub-markets according to the nature of the trip. However, the Authority considered that there was no reason to define the market further than day trips and short breaks for tourists in Iceland. Furthermore, it was noted that the merging parties were able to provide a wide range of services and adapt to consumers on an individual basis, which suggested that the market should be defined more broadly rather than narrowly. In the opinion of the Competition Authority, there are indications that the relevant geographic market is Iceland, but in light of the fact that this does not affect the outcome of the case, it is not necessary to take a final position on the delimitation of the geographic market.

In light of the discussion in the decision, it is the conclusion of the Competition Authority that the relevant merger will not result in the creation or strengthening of a dominant position, nor will it otherwise significantly distort competition, in accordance with Article 17(c). of the Competition Act, No. 44/2005.