NMa Netherlands Competition Authority

If their planned merger were to go through, Buitenfood and Ad van Geloven would attain a substantial market share, and would thus have a strong position in the frozen food market vis-à-vis buyers, such as retailers, wholesalers, hotels, and restaurants. With two of the biggest manufacturers merging, buyers and, ultimately, it is likely that consumers will see their choice of frozen food products narrowed. This could lead to higher prices, less quality, or less choice, which could harm consumers. One of the aspects the NMa wishes to investigate when parties file their application for a merger license is to what extent buyers, such as supermarkets and wholesalers, are capable of taking a stand if the merger parties permanently and profitably raised prices of their frozen food products.

In December 2011, the NMa requested the European Commission if it could review this merger. In January 2012, the European Commission granted the NMa’s request to review this merger as far as the Dutch market is concerned. At the same time, it cleared the merger of the manufacturers’ Belgian activities.

Merger review
When reviewing mergers and acquisitions, the NMa assesses whether effective competition in the market is significantly impeded, particularly when a dominant position is created or strengthened. Such a dominant position can have negative effects on the price, quality and range of the products or services offered on the market. Were that to happen, the NMa could attach conditions to the planned concentration or block it altogether. It is prohibited to go through with a concentration before the NMa has ruled on it.