NMa: License Required for the Concentration of The Greenery and Fruitmasters

Following an investigation, the Netherlands Competition Authority (NMa) has concluded that the concentration of the fresh fruit auctioning activities of The Greenery and Fruitmasters will result in a new auctioning organisation, which could possibly result in the emergence of a dominant position. Competition on the Dutch market or a part of it may be seriously impeded as a result. NMa has therefore informed both parties that a license is required for the realisation of this concentration. NMa wishes to carry out a more in-depth investigation into the consequences of the proposed concentration for fruit growers and consumers.

The Greenery is a subsidiary of Coöperatie VoedingsTuinbouw Nederland (VTN) and is the marketing and sales organisation for approximately 3000 vegetable and fruit growers affiliated to VTN. Coöperatie Fruitmasters markets the products of approximately 1150 fruit growers affiliated to it through its auction and brokerage services.

Auction and brokerage services are provided to both the suppliers (fruit growers) and the buyers of fruit. On the Dutch market for auction and brokerage services for fruit growers, the majority of Dutch fruit growers will offer their fruit for sale through a single company as a result of the proposed concentration. NMa will establish, for instance, what real alternative sales channels are available to fruit growers in the Netherlands and abroad. In addition, NMa considers it plausible that the competition between the Greenery and Fruitmasters has an affect on price setting on the auctions and in brokerage transactions. This effect will disappear after the merger. A far-reaching investigation is necessary into fruit sales prices in the Netherlands in order to determine the extent to which the proposed merger could affect market prices.

It is not the first time that The Greenery and Fruitmasters have informed NMa of their intention to set up a joint company for the auctioning and brokerage of fresh fruit. NMa also received notification of a concentration from The Greenery and Fruitmasters in 1999. At the time, NMa also concluded that a further investigation was necessary. On that occasion, the parties decided not to pursue their proposal.