uses cookies to analyze how the website is used, and to improve the user experience. Read more about cookies

ACM clears acquisition of Geveke and LEWA by Atlas

The Netherlands Authority for Consumers and Markets (ACM) has cleared the acquisition of industrial manufacturers Geveke and LEWA by rival company Atlas. Sufficient competition will remain on the markets for industrial pumps and industrial air compressors. This has been revealed by the investigation that ACM carried out into this planned acquisition. 

What is this case about?

Industrial pumps and industrial air compressors often play an important role in all kinds of production processes, for example in the food and beverage industry and in the chemical and pharmaceutical industry.  
Atlas and LEWA compete with each other with regard to the production, selling, and maintenance of industrial pumps. However, they hardly do so in the Netherlands. That is why ACM does not expect this acquisition to have any negative effects.

Atlas and Geveke compete with each other in the Netherlands with regard to the selling and maintenance of industrial air compressors. ACM has established that, after the acquisition too, sufficient competition will remain on both of these markets. Buyers will thus have sufficient opportunities to purchase air compressors from other suppliers. With regard to maintenance, the technology that is used as well as the spare parts for most types and brands are universal. Buyers of air compressors are therefore not dependent on any one supplier or manufacturer. That is why ACM has cleared this acquisition.

ACM’s concentration control: mergers, acquisitions, and joint ventures

With any merger, acquisition, or joint venture, there is a question of whether sufficient competition will remain on that market, right after the concentration as well as in the subsequent years. Competition ensures that products 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 companies are allowed to join forces. ACM assesses whether the markets involved will continue to work well for people and businesses after that transaction. 

See also