News ACM
More investigation into the acquisition of Van Dam by Van Drie
For the time being, Van Drie Group has not yet received the green light from the Netherlands Authority for Consumers & Markets to take over the Frisian company Van Dam. According to the competition authority, more research is needed into the consequences of this acquisition for dairy farmers and other slaughterhouses. A disappointment, because the parties had counted on quick approval.
The Netherlands Authority for Consumers & Markets (ACM) reports that it finds it necessary to conduct more research into the consequences of the takeover of Van Dam by the Van Drie Group. "It is unclear what the consequences will be for, for example, dairy farmers and other competing slaughterhouses," the statement reads the website of the supervisor. That is why ACM has decided not to give the green light until an additional investigation has taken place.
Is there enough competition left?
Van Drie is the market leader in the veal sector and has a turnover of approximately €2 billion. Van Dam is mainly active as a trader and has a turnover of €120 million. "If the parties want to go through with the takeover, the consequences will first be investigated," says the ACM. "This looks at the consequences for the position of the dairy farmers, the competitors of Van Drie and Van Dam and the sale of fattened calves to slaughterhouses. One of the questions that is asked is: will there still be sufficient competition after the merger? ?"
It is a setback for both parties. The acquisition was announced in December and both had counted on prompt approval from the Dutch competition authority.
Kimberly Baker
© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.