NMa Enforces Restructuring of Asphalt Production Sector

The Netherlands Competition Authority (NMa) has assessed all the joint ventures of road construction companies in relation to the production of asphalt in the Netherlands. The conclusion is that fifteen joint ventures contravened the prohibition on cartels. The structure of the joint ventures was not permissible. NMa has therefore demanded the sale of certain investments by construction companies in these asphalt plants. This is the first time that NMa has examined all the joint ventures in an entire sector in such a comprehensive manner.

In the Netherlands, there are approximately fifty asphalt plants, of which thirty are operated by joint ventures of road construction companies. A number of these joint ventures applied to NMa for an exemption from the prohibition on cartels. The other joint ventures were also included in the assessment by NMa.

The fifteen joint ventures which contravened the prohibition on cartels were not eligible for exemption. With regard to thirteen joint ventures, one or more large construction companies sold their investments in the asphalt plants following this ruling by NMa. These are (subsidiaries of) Ballast Nedam, KWS, HBG, BAM-NBM, Dura Vermeer and Heijmans. After these changes had been made, NMa approved the structure of the joint ventures.

NMa was not yet able to approve the remaining two joint ventures. With regard to one joint venture, the undertakings which participate in it are still looking for a solution which will meet NMa's criteria. With regard to the other joint ventures, the proposals made by the companies which participate in it did not remove the competition concerns. The application for exemption submitted by this joint venture has been dismissed. This means that NMa is of the opinion that the structure of the joint venture in the case of this asphalt plant still requires far-reaching changes. This relates to the asphalt plant Stedendriehoek in Deventer.

Due to the intervention by NMa, the number of companies that co-operate with each other in asphalt plants has been reduced. The result of this is that the network structures which existed between the large road construction companies through the asphalt plants have been reduced considerably. This means that the road construction companies will encounter each other less frequently in the market. NMa has imposed this restructuring with a view to promoting competition in the asphalt production sector and the road construction sector which is linked to this.