NMa Approves Merger of Vizier and De Wendel after a New Institution Enters the Market

Vizier and De Wendel, both active as institutions for the mentally handicapped in the province of North Limburg, have been given permission to merge. Following an investigation, the Netherlands Competition Authority (NMa) has granted a licence for the merger. A condition for this is that Vizier agrees not to proceed with the increase of 55 new intramural healthcare places in the province of North Limburg. In its place, this increase in capacity will be realised by a new entrant in the region, Pluryn Werkenrode Groep. Pluryn is active, for instance, as an institute for the mentally handicapped in Gelderland.

In March of this year, NMa indicated that the merger of Vizier and De Wendel could result in restricted choice for customers in the province of North Limburg, since only one institution would remain as the alternative in the respective region after the proposed merger. Due to the entry of Pluryn, three suppliers will be active in North Limburg.

The merged institution, Vizier/De Wendel, if requested, will assist Pluryn, within certain limits, until the end of 2008 with regard to its entry into North Limburg. For instance, Pluryn may purchase services from Vizier/De Wendel for unscheduled healthcare at night, so that Pluryn can offer a full range of healthcare immediately in the region.

Due to its entry with 55 intramural places, Pluryn will be an independent healthcare provider in North Limburg, which is in a position to extend its healthcare provision. In addition to the other institution present, Daelzicht, Pluryn is also deemed to be in a position to exert sufficient competitive pressure on Vizier/De Wendel. For this reason, NMa is of the opinion that a dominant position will not arise or be strengthened due to the proposed merger of the two institutions for the mentally handicapped.