Faroese grocery market faces changes as Icelandic firm seeks acquisition

The Faroese market might experience significant competitive advantages when local grocery retailers are sold abroad, as stated by the chair of the Economic Council, Johnny í Grótinum.

He highlighted a concern that if companies like SMS and Føroya Keypssamtøka change ownership to foreign entities, the profits generated may be transferred overseas instead of contributing to the Faroese treasury.

The Icelandic firm, Hagar hf, listed on the Icelandic stock exchange, is looking to acquire the entire share capital of P/F SMS. This move is contingent upon receiving necessary regulatory approvals.

Additionally, Fredensborg and Omegns Brugsforening plan to take over Føroya Keypssamtøka. The competition authority is required to review and approve this acquisition, with the deadline for any potential comments concerning the takeover set for November 22.

Overall, these developments could reshape the landscape of grocery retail in the Faroe Islands and raise questions about the implications for local economies and public finances.