Merger of Haga hf., Olíuverzlun Íslands hf. and DGV ehf.

The Competition Authority has published a decision
No. 9/2019, The merger of Haga hf.,
Olíuverzlunar Íslands hf. and DGV ehf. The decision is based on agreements
Competition Authority and the merger parties, dated 8 and 11 September 2018. Hagar
is the country's largest retailer of groceries, and the company operates Bónus and
Hagkaupa. Olís is one of the largest fuel retailers in Iceland. DGV is
Real estate company.

The investigation into the matter revealed that
the merger, without conditions, would be likely to distort competition by
to a significant extent. Specifically, the regulator's assessment was that the merger would
to strengthen Haga's market-leading position in the grocery market, lead to local
distortions of competition in certain geographical areas have a detrimental effect on wholesale-
and inventory levels and result in increased and harmful ownership ties between
competitors in both the fuel and grocery markets.

The investigation into the matter concluded with the signing of a settlement.
between the Competition Authority and the merging parties. On the other hand, a settlement with Haga
dated 11 September and, on the other hand, a settlement with FISK-Seafood ehf. and Kaupfélag
Skagfirðinga District Court, dated 8 September 2018. By the settlement, the parties commit
mergers parties to take action aimed at promoting and protecting effective competition
in the fuel and grocery markets and respond to the aforementioned disruption in
competition which the merger would otherwise lead to.

The conditions included, among other things, the sale of assets on
fuel and grocery markets. The sale of assets in the grocery market was intended in particular to
respond to the strengthening of Haga's dominant market position in the grocery market. To
a previous sale procedure and an inspection by an independent expert appointed in
October 2018 to monitor the implementation of the settlement, approved
The Competition Authority purchased the buyers of the sold assets at the end of November 2018. In
Subsequently, Högum was permitted to carry out the merger.

Summary of the outcome of the case and those
The conditions set for the merger can be found in Chapter V.6 of
the decision.

The decision is based on the aforementioned.
settlement and its purpose is to provide merger parties, their competitors, other
companies that believe they have an interest and others who are interested in
in the merger, information and explanations on the purpose of the measures set out
in harmony.