As of January 1st, 2021, changes in the rules on merger control in Greenland came into force, and it must be expected that more transactions will now become subject to notification to the authorities.
A merger must be notified to the Consumer and Competition authorities in Greenland, if the turnover of the undertakings involved exceeds the threshold limits laid down in the Greenlandic Competition Act.
Under the previous legislation, the threshold limits were based on the turnover in Greenland of the undertakings involved. Under the changed rules the turnover criteria of the undertakings involved are now based on the global turnover, provided that one of the undertakings involved must be located in Greenland.
Now, under the changed rules merger control applies to a merger if:
- the aggregate annual global turnover of the undertakings involved is more than DKK 100 million,
- the aggregate annual global turnover of at least 2 of the undertakings involved is more than DKK 50 million, and
- at least one of the undertakings involved is located in Greenland.
The intention is among other things to “catch” mergers between undertakings involved, who purchase primary produce for the purpose of exporting, for which the turnover not necessarily is placed in Greenland, only. However, it must be expected more generally that the scope of merger control will be expanded.
For further information please contact
(+299) 53 17 70