Merger of Ísfélag Vestmannaeyja and Rammi approved

The ICA recently took a
position on the merger of Ísfélag Vestmannaeyja hf. and Ramma hf. The merger was
duly notified on 10 February 2023, and the statutory deadlines then began to
run. The investigation ended on phase I on 17 March 2023.

It was the
conclusion of the ICA that there were no grounds for intervention. There were
no evidence to assume that a market dominant position was being formed or
strengthened in the markets of the case or that competition would be disturbed
in any other way.

According to
information in the case, the merging parties would have over 8% of market share
in terms of quota (ísl. aflahlutdeildir), which is below the 12.0% maximum
according to Act no. 116/2006 on fisheries management. Other information in the
case regarding markets for demersal fishing and pelagic fishing, processing of
demersal fish, sale of demersal fish on the fish market, direct exports of
demersal fish and allocated quota for shellfish and crabs did not warrant
further investigaton.

The decision deals with the interaction between
competition laws and provisions on maximum quota in the Act on Fisheries
Management. It is the task of the Fishery Agency to follow up on compliance
with the provisions of the Fisheries Management Act. It was stated in the case
that the merging party’s quota exceeded the maximum according to the Fisheries
Management Act regarding capelin, but it was declared in the case by the
merging parties that measures would be taken to bring the quota below that
limit in accordance with the Fisheries Management Act no. 116/2006. 

Having said
that, the ICA does not carry out investigation or enforcement in relation to
the Fisheries Management Act. The Fishery Agency commented on the case and did not
make any observation on the merger.

The decision (10/2023), in Icelandic, can be accessed here.