The Icelandic Competition Authority has had under investigation the competitive effects regarding Festi’s purchase on the entire share capital of Lyfja hf., since the company's announcement of the merger was deemed satisfactory on November 9, 2023.

The Icelandic Competition Authority has presented Festi with a statement of objections regarding its preliminary conclusions, but a letter to that effect was received by the company after closing of markets on Friday March 15, 2024. It is stated therein that the merger will, based on the current state of the investigation, require intervention by the Icelandic Competition Authority. Furthermore, it is stated in the letter that the preliminary conclusions are based on current data, that they are not binding and that it may change as the investigation progresses. As indicated in the letter, the preliminary conclusions are also intended to facilitate Festi to use its right to object in accordance with law and to ensure the right decision to be made on the matter.

Analysis of the preliminary conclusions is ongoing. Festi has until March 29, 2024, to submit arguments regarding the preliminary assessment, to propose remedies for the specific factors it covers as well as to request conciliation talks with the Icelandic Competition Authority.

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

For further information, please contact Ásta S. Fjeldsted, CEO of Festi (asta@festi.is)