Breach by Sævarhöfði ehf of the merger notification obligation

In a letter dated 27 September 2007, the Competition Authority drew attention to the fact, citing a news report that the holding company Sævarhöfði ehf. had, by a purchase agreement dated 18 July this year, purchased all the shares in Bifreiðar og Landbúnaðarvélar hf., that a merger might be involved which would be subject to notification under Article 17 of the Competition Act. The Competition Authority required the company to notify it of this merger. The merger notification was received by the Competition Authority on 8 October 2007, almost three months after the notification obligation arose.  By doing so, Sævarhöfði breached its merger notification obligation, and pursuant to Article 37 of the Competition Act, the Competition Authority imposes a fine on companies that breach the obligation to notify a merger within the statutory deadline. Sævarhöfði was therefore fined 1,500,000 krónur.