Press release

No.: 20B/2003
Date: 18.03.03

A possible merger between Den norske Bank and Gjensidige Nor needs to be carefully assessed

In a letter to the Norwegian Competition Authority today, Minister of labour and government administration, Mr. Victor D. Norman, emphasizes the importance of a normal, careful assessment of a possible merger between Den norske Bank and Gjensidige Nor from a competition perspective, including the question of issuing a temporary stand still order.

- I have noted that the Director General of the Competition Authority has expressed concern about a merger's restrictive effects on competition. I am fully confident that the Authority will make a thorough assessment of the implications for the competition aspects of the matter, including the question of a temporary stand still order, Mr. Norman says.

In accordance with the Norwegian Competition Act, the Competition Authority may intervene against acquisition and merger of companies if the Authority finds that the acquisition will create, or strengthen, a significant restriction of competition. The Authority may intervene against an acquisition within six months after a final agreement on the acquisition has been made.

It may be difficult for the Competition Authority to intervene against mergers if the parties commence the merger processes immediately after signing an agreement. The Competition Act therefore authorizes the Authority to issue a temporary prohibition to put the merger into effect, if there is reasonable grounds to assume that the acquisition will create a significant restriction of competition, and if this is viewed as necessary in order to enforce a possible decision of intervention later.