Company Announcements

The EFTA Surveillance Authority (ESA) conducted an inspection today at SKEL fjárfestingafélag hf ("SKEL") following its decision to examine the activities of Lyfjaval ehf. ("Lyfjaval"). Companies are legally required to comply with inspections mandated by the ESA in accordance with Article 20, paragraph 4, of Chapter 4 of the Protocol to the Agreement of the EFTA regarding the establishment of a supervisory body and court.

Lyfjaval is owned by Heimkaup ehf., which is 81% owned by SKEL and its related companies. According to the ESA's decision, this investigation is part of a inquiry into potential market segmentation in the retail pharmaceutical market, specifically concerning traditional pharmacies and drive-through pharmacies. Allegations suggest that Lyfjaval has closed a traditional pharmacy in Mjódd to focus on operating a drive-through pharmacy. SKEL estimates Lyfjaval's market share to be approximately 10%.

SKEL partially acquired Lyfjaval on June 25, 2021, and completed the purchase on March 29, 2023. SKEL and its affiliates own and operate seven pharmacies, five of which are drive-through pharmacies. Notably, all drive-through pharmacies also function as traditional pharmacies with customer access. Since 2022, three new pharmacies have been opened.

The ESA's inquiry includes the transaction in which Lyfjaval sold commercial premises in Mjódd to Lyf og Heilsa, under an agreement dated April 26, 2022. The Competition Authority was separately notified of this transaction and subsequently closed the case with decision no. 1/2023 on March 2, 2023. This decision was appealed to the Competition Appeals Committee, which ruled on August 9, 2023.

SKEL and Lyfjaval are committed to cooperating with the investigation and have provided the ESA with the requested information. SKEL has no reason to believe that any competition laws have been violated in Lyfjaval's operations.

For more information, please contact Ásgeir Helgi Reykfjörður, CEO of SKEL, at fjarfestar@skel.is.