Danes Buy Icelandic Hardware Store Skip to content

Danes Buy Icelandic Hardware Store

husasmidjan-logoThe acquisition of the Danish construction supplies store Bygma A/S of the Icelandic hardware store Húsasmiðjan will be carried through early this week as stated in an agreement between Bygma and the fund Framtakssjóður Íslands, Húsasmiðjan’s owner.

According to Fréttablaðið’s sources, negotiations were well underway when the Commissioner of the Inland Revenue announced an ISK 500 million (USD 4 million, EUR 3 million) additional markup on Húsasmiðjan because its former owners used interests of loans used to buy the company for tax reduction.

The Commissioner of the Inland Revenue considered it illegal to use such loans for tax reduction but Húsasmiðjan has objected the additional markup.

The executives of Bygma and Framtakssjóður reached an agreement last week on how to deal with the markup if it must be paid and thus how the acquisition will be carried out.

ESA

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