The merger of Síldarvinnslan with Grindavík fishing company Vísir has been given the green light by the Icelandic Competition Authority.
Síldarvinnslan acquired Vísir in July this year, subject to approval by the Authority. According to a statement by the Icelandic Competition Authority (ICA), the acquisition has been considered and investigated, and the conclusion is that there are no grounds for intervention.
The ICA states that in previous decisions concerning Síldarvinnslan, the it obtained information and opinions about relationship with Samherja hf. and Gjögur hf./Kjálkanes ehf which revealed significant management, ownership and business relationships between these entities, which include evidence that control has been established in Síldarvinnslan beyond what has previously been reported in merger announcements.
‘The information available in this merger case continues to indicate ownership, management and business relationships between Síldarvinnslan, Samherji and Gjögur/Kjálkanes. For that reason, the competitive effects of the merger were examined from two perspectives; on the one hand, based on the merger as it was reported, and on the other hand, based on the possible control of Samherji and related companies over Síldarvinnslan,’ the ICA stated.
‘It is the conclusion of the ICA that there are no grounds for intervention, regardless of the narrower or wider control definition. Thus, there are no grounds to conclude that a market dominant position is being created or strengthened. Also, the available data do not indicate that competition is disturbed in a another way.’
The decision deals with the interaction between competition laws and provisions in the Fisheries Management Act.
‘Attention is drawn to the fact that control is not defined in the same way in the two laws. It is the task of the Fisheries Agency to follow up on compliance with the provisions of the Fisheries Management Act,’ an ICA representative stated.
‘ICA had a meeting with the Fisheries Agency and discussed the indications of possible control of Samherji and related companies of Síldarvinnslan. ICA will provide more information to the Fisheries Agency, if deemed necessary.’
According to Síldarvinnslan CEO Gunnthór B Ingvason, the formalities are now able to be concluded, following which decisions can be taken on integrating aspects of the companies’ activities.
He commented that Vísir operates a high-tech processing operation in Grindavík, and opinion is that this could be put to even better use by integrating this with salmon production, which is growing fast in the south-west of Iceland. Vísir’s location close to the international airport and key shipping points also brings further advantages.
