Iceland’s third-largest pension fund, Gildi, is set to discuss a potential merger with Festa pension fund — the country’s ninth largest, it has been announced.
The two pension funds said yesterday their boards had decided to start discussions on a possible merger, which they said would create the second-biggest pension fund in Iceland.
In a joint statement, the funds’ boards said: “The discussions will examine, among other things, whether a merger is a beneficial option for fund members of both funds, as well as whether a merger can result in increased economies of scale, improved service and an even stronger fund for the future.”
They said it was clear that the two pension funds were similar “in nature and structure, including a very similar rights system and articles of association”.
Based on their financial positions at the end of last year, Gildi and Festa manage approximately ISK1.6trn (€11bn) combined, the funds said.
The news comes amid a flurry of merger activity in Iceland’s pension sector, which has been gradually consolidating for decades.
On 29 May, the newly-merged Almenni-Lífsverk said its board had decided to start exploratory talks on a potential merger with SL pension fund.
However, early talks between the Pension Fund of Commerce (Lífeyrissjóður verzlunarmanna, LV) and Birta Pension Fund on a possible merger – which would have given rise to the country’s largest pension fund — came to an end in May after both funds analysed figures.
