Icelandair Group has announced it has reached an agreement on the merger of its wholly-owned unit, Iceland Travel ehf., and Allrahanda GL ehf. which is jointly owned by the founders of the company and Akur fjárfestingar slhf. Allrahanda GL operates as Gray Line Iceland with a licence agreement from Gray Line Worldwide.
The Icelandic firm said in a statement that following the merger, Icelandair Group will own 70% of the merged company, while the owners of Allrahanda will own 30%.
"The objective of the merger is to further improve services to customers and at the same time to achieve rationalization in the companies' operations," it said adding that the two companies' management and operations would be combined.
The aggregated turnover of the merged company for 2017 is projected at just short of ISK18 billion (USD170 million).
The merger is subject to the results of due diligence and the approval of regulatory authorities.
