ACM launches investigation into acquisition of cash-in-transit company Ziemann by rival company Brink’s

The Netherlands Authority for Consumers and Markets (ACM) launches an investigation into the recent acquisition of the Dutch branch of the German cash-in-transit company Ziemann by rival company Brink’s. These specialized companies transport cash, for example, to ATM machines and brick-and-mortar stores, by order of banks and retailers.

ACM has already had concerns about the cash-in-transit market for a while now, due to the limited number of market participants as well as the market position of Brink’s. Brink’s is part of a group that is active worldwide and is, by far, the largest cash-in-transit company in the Netherlands. Ziemann will leave the Dutch market as a result of the acquisition. This acquisition increases ACM’s concerns about competition. A lack of competition typically leads to higher prices, poorer services, and less innovation.

Brink’s indicated that ACM had not needed to be notified of this acquisition in advance, because the turnover thresholds were not met. However, since real concerns about competition do exist at first glance, ACM will now investigate whether or not the competition rules have been violated, including the prohibition on abuse of dominance. The investigation will reveal whether or not a violation has indeed been committed.

New power regarding merger assessments

ACM does not need to be notified of each and every merger or acquisition. Only if the merger companies meet certain turnover thresholds, then they are required to notify the competition authority of their merger or acquisition first. However, acquisitions that fall below those notification thresholds can also have negative consequences for consumers and businesses in the Netherlands. For example, if an already dominant business buys a smaller, rising competitor or if competition takes place at a local level or in niche markets. The market power that can emerge as a result thereof leads to higher prices, reduced quality, and less innovation.

That is why ACM is in favor of the introduction of a “call-in power”. That means that ACM does not to be notified of all smaller acquisitions, but only those that ACM at first glance believes could be problematic for businesses and consumers in the Netherlands. ACM will then be able to assess those acquisitions in the usual manner or it can refer them to the European Commission if the consequences of an acquisition occur at the European level.