The preliminary discussions between Kvika banki hf. and Arion banki hf. with the Competition Authority regarding the proposed merger have now concluded.
Representatives of Kvika banki and Arion banki met with representatives of the Competition Authority today, during which the authority presented its position following the completion of the preliminary discussions process.
In light of the position expressed by the Competition Authority at the meeting, the Boards of Directors of Kvika banki and Arion banki have concluded that the proposed merger cannot proceed.
The Boards of Directors have therefore decided to discontinue the merger plans that were announced in a Stock Exchange notice dated 6 July 2025.
Ármann Þorvaldsson, CEO of Kvika banki:
"Significant effort has been devoted over recent months to the preliminary discussions with the Competition Authority, and I would like to thank Arion banki for a constructive and professional collaboration. These discussions have been beneficial in that they have now clarified that a merger between Kvika and the larger commercial banks will not take place.
Given the significant value a merger with Arion could have created for shareholders and customers, we considered it necessary to explore whether such a transaction could be realised. The outcome of the preliminary discussions process is now clear, and Kvika will continue confidently on its exciting independent journey.
Kvika benefits from a strong team, loyal clients, a diversified portfolio of trusted brands with substantial growth opportunities both in Iceland and the UK.
As stated in our results presentation on 11 February, Kvika's capital position is extremely strong, providing significant capacity to return substantial funds to shareholders. Kvika expects to convene a shareholders' meeting shortly, at which the Board intends to propose the approval of a special dividend."
Please note that this notice is a disclosure of inside information per article 7 of regulation (EU) No 596/2014 on market abuse ("MAR"), which is implemented into Icelandic law with the act on measures against market abuse No 60/2021.
