Acquisition of Corendon by Sunweb requires further investigation
A further investigation is needed into the effects that the acquisition of Dutch tour operator Corendon by rival operator Sunweb will have on competition. Sunweb therefore cannot yet acquire Corendon. That is what the Netherlands Authority for Consumers and Markets (ACM) has decided. Sunweb and Corendon are both major providers of package tours to beach destinations on the Mediterranean coast, among other destinations.
After the acquisition, few other package tour providers will remain active in the Netherlands: TUI, their main competitor, and several smaller tour operators. The reduction in competition may lead to more expensive or lower-quality package tours for holiday-goers. In addition, the Sunweb/Corendon combination may become so large that other providers will have a harder time booking airplane seats for their package tours.
That is why ACM wishes to conduct a further investigation. Sunweb has indicated that it will apply for a license for the acquisition. Following that application, ACM will conduct an investigation among consumers and competitors to see whether sufficient competition will remain after the 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 future. Competition ensures that products are of high quality, and that they are offered on the market at competitive prices. 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.
More in this case
10-03-2020 Sunweb Group wishes to acquire Corendon Holding (concentration notification) (in Dutch)