Electronics chains fuse into one

The country’s two major electronics retailers will merge into one at the start of the new year.

On 26 August, Kappingarráðið (the Faroese Competition Council) was notified of Elding’s planned acquisition of its main rival, Power.

The council earlier this month ruled out the acquisition as it was deemed to be in violation of the antitrust law.

However, the decision has now been overturned after it emerged that Power Føroyar was planning to close its operations at the end of this year regardless of whether the acquisition was approved.

No breach of antitrust laws

Given this new information, the council no longer regards the acquisition as a significant breach of antitrust laws.

Tórshavn’s SMS shopping centre has announced that it no longer wants to provide financial support to Power Føroyar as the store has been unprofitable for some time.

This means that Power Føroyar, a private limited company, will cease operations on 1 January 2023.

Elding will take over Power’s inventory, which is estimated to be worth DKK 12 million.

The Competition Council has, however, been informed that the Power chain remains interested in selling to the Faroese market.

Read the Faroese versions of this article here and here.

More Faroese News in English.