Reykjavík City Council Accepts Sale of HS to Magma Skip to content

Reykjavík City Council Accepts Sale of HS to Magma

By Iceland Review

Reykjavík City Council confirmed the sale of Reykjavík Energy’s 31 percent stake in Sudurnes energy company HS Orka to Canadian Magma Energy yesterday after a heated debate and protest from the public. Magma now holds a 43 percent stake in HS Orka.

Reykjavík City Hall. Photo by Páll Stefánsson.

The acquisition was accepted with the majority’s eight votes against the minority’s seven. Following the voting, spectators in the City Hall shouted: “Unfit City Council!” Three protestors were arrested after a toilet roll was thrown down from the podium, reports.

A proposal from the Left-Green representatives on the City Council that the decision be postponed until a committee on foreign investments had completed its evaluation of the acquisition was rejected, according to Morgunbladid.

Minister of Business Affairs Gylfi Magnússon would not assess whether it would have been more fortunate had the committee presented its evaluation of the acquisition before it was greenlighted by the City Council.

“This committee was appointed to review matters of opinions regarding the legality of foreign investments. Now that will be the next step,” Magnússon said. The committee has a meeting scheduled for next week.

Click here to read more about the acquisition.

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