The Icelandic Competition Authority has agreed to Festi’s request to start conciliation talks on possible remedies associated with Festi’s acquisition of all shares in Lyfja hf. The conciliation talks are expected to start this week.

Reference is made to Festi’s announcement, published on the 18^th of March 2024, regarding the preliminary conclusions in the Icelandic Competition Authority’s investigation into the competitive effects of Festi’s purchase on the entire share capital of Lyfja hf. It is stated therein that the merger will, based on the current state of the investigation, require intervention by the Icelandic Competition Authority.

In Festi’s announcement, published on the 26^th of March 2024, it was reported that the company had submitted a response to the Icelandic Competition Authority‘s preliminary conclusions where Festi‘s arguments and proposals for remedies were presented. The response formally requested a conciliation talks with the Icelandic Competition Authority on possible remedies associated with the acquisition. The Competition Authority has now agreed to Festi’s request regarding the matter.

Further information about the progress of the conciliation talks will be provided when applicable.

For further information, please contact Ásta S. Fjeldsted, CEO of Festi (asta@festi.is) and Magnús Kr. Ingason, CFO of Festi (mki@festi.is).