Hekla abandons Bílson purchase after watchdog demands

Hekla has abandoned its planned purchase of Bílson, a car repair workshop, after demands from Iceland’s Competition Authority. Hekla chief executive Friðbert Friðbertsson told mbl.is that the authority’s position came as a considerable surprise.

The purchase was called off because the authority’s investigation indicated that the markets in which the companies operate would be defined more narrowly than before.

The purchase agreement, signed in December, was conditional on approval from the Competition Authority.

“The seller decided to withdraw because of burdensome demands from the Competition Authority. The authority’s position surprised me because this is an ordinary car workshop that has little impact in the wider context,” Friðbertsson said.

Bílson is an authorised service provider for Hekla. It carries out scheduled servicing, oil changes, general repairs, warranty repairs and recalls for Volkswagen, Volkswagen commercial vehicles and Škoda.

“Highly trained people work there, so it is very surprising that this was the outcome. This is an operation with 10 car lifts, and I do not see how it changes the world for anyone. This is disappointing, and one would have liked to see the matter proceed differently. The Competition Authority’s intervention in a transaction of no greater scope than this is noteworthy,” the CEO said.