ACM clears Roompot to acquire Landal GreenParks after selling 30 holiday parks to Dormio Group

The Netherlands Authority for Consumers and Markets (ACM) has conditionally cleared the acquisition of holiday village park chain Landal GreenParks by rival chain Roompot. Roompot must first sell 30 holiday parks to resort and hotel chain Dormio Group. Roompot and Landal rent out holiday accommodations in holiday village parks. Both companies also offer rental services and marketing services to owners of holiday homes and holiday parks. Since the elimination of competition between Roompot and Landal could result in higher prices, ACM has set conditions on this acquisition. By selling 30 holiday parks to Dormio, a strong competitor emerges on the market for holiday rentals to consumers. In addition, Dormio will be able to compete with rental services and marketing services to owners of holiday homes and holiday parks. That is why ACM has cleared this acquisition.

Martijn Snoep, Chairman of the board of ACM, adds: “Holiday parks are popular among vacationers, and are important in the recreation sector. We could not have cleared this acquisition without setting any conditions, as too big a competitor would have emerged. As a significant number of holiday parks will now go to Dormio, we have given competition in the sector a boost. This is great news for prices, quality, and innovation in this sector.”

Sale of holiday parks to Dormio Group

ACM has conducted an in-depth investigation (including an economic study), sitting down with many market participants. ACM established that, after the acquisition, Roompot/Landal would become the largest provider of holiday parks in the Netherlands. Other companies with holiday parks, such as Center Parcs or EuroParcs, are much smaller. At the moment, the parks of Roompot and Landal are fierce competitors of each other. If Roompot and Landal had merged without any conditions, the rental prices of their holiday accommodations could have gone up.

Furthermore, Roompot and Landal GreenParks are the most important suppliers of services to holiday parks that they do not own. Roompot and Landal provide, for example, rental, marketing or management services for holiday accommodations or holiday parks. Since insufficient alternatives exist on the market, there was also a risk that prices and commissions for these services would go up.

That is why Roompot and Landal had proposed to sell 30 holiday parks. To that end, they started looking for a suitable buyer. Dormio will acquire all 30 parks. In addition, Landal/Roompot will also sell two brand names to Dormio: Hogenboom and Largo. In order to be sure that the competition problems would be solved, ACM was only able to clear the acquisition after the sale had been finalized.

Dormio is already active as a provider of holiday parks in the Netherlands and other European countries. With the addition of 30 parks as well as investments announced by Dormio itself, it will become a serious competitor in the recreation sector. As a result, prices for consumers and companies can remain competitive.

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

With any merger or acquisition, there is the question of whether sufficient competition will remain on that market, right after the transaction as well as in the future. 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 merge or acquire another company. ACM assesses whether the markets involved will continue to work well for people and businesses, now and in the future.

More in this case

02-12-2021 Roompot and Landal apply for an acquisition license (concentration notification) (in Dutch)

See also

29-11-2021 Further investigation needed into acquisition of holiday village park chain Landal by rival chain Roompot | ACM.nl
16-12-2021 Further investigation needed into acquisition of Landal by Roompot (concentration decision) (in Dutch)
29-11-2021 Further investigation needed into acquisition of Landal by Roompot (final notification) (in Dutch)