ACM: Further investigation needed into acquisition of Dutch oil company Oliehandel Klaas de Boer by rival FincoEnergies

The Netherlands Authority for Consumers and Markets (ACM) has decided that further investigation is needed into the acquisition of Dutch oil company Oliehandel Klaas de Boer by rival FincoEnergies. Both companies supply, among other products, marine fuel in various Dutch ports. They serve various types of buyers, such as fishermen, ferryboats, and marine towing service providers. FincoEnergies and Oliehandel Klaas de Boer have a strong presence in northern ports in particular. As a result of this acquisition, FincoEnergies would become practically the sole supplier of marine fuel in many of these ports. The acquisition of Oliehandel Klaas de Boer may consequently have adverse effects for diesel-fuel buyers, such as higher prices or reduced services. That is why ACM has decided that further investigation is needed into the consequences of this acquisition.

Supply of marine gas oil

FincoEnergies and Oliehandel Klaas de Boer bunker marine fuel in various ports in the Netherlands. Bunkering means supplying ships with fuel. In the northern Dutch ports of Harlingen, Lauwersoog, and Eemshaven-Delfzijl and in the western ports of Den Helder and IJmuiden, FincoEnergies and Oliehandel Klaas de Boer are practically the only marine-fuel suppliers. These companies therefore have a very strong market position in these areas. In these ports, they supply predominantly marine gas oil to business customers, such as fishermen, marine towing service providers, passenger or ferry services, and offshore companies. A substantial share of these business customers cannot simply go to a different port to get their marine gas oil, because of the distance and the relatively high costs that are associated with it. These buyers are ‘bound’ to a particular port for their marine gas oil.

ACM’s market study shows that that ‘port-bound buyers’ of marine gas oil in the northern ports see few, if any, alternatives (next to FincoEnergies and Oliehandel Klaas de Boer). In Den Helder and IJmuiden, the main concern is that not enough diesel-fuel suppliers will remain for fishermen. The acquisition can thus have adverse effects for buyers, such as price increases. In a second phase, ACM can further investigate these provisional findings.

Why does ACM assess acquisitions?

With every acquisition, there is the question of whether sufficient competition remains, directly after the transaction as well as in the subsequent years. Competition ensures that products or services are of high quality, and that they are offered on the market at competitive prices. Competition also promotes innovation. That is why ACM decides in advance whether or not businesses are allowed to join forces. An acquisition is not cleared if a merger has negative effects on competition and, by extension, on prices, quality, and innovation, and if, ultimately, it also harms consumers. ACM assesses whether markets will continue to work well for people and businesses, now and in the future.