NMa: further investigation Cosun/ CSM Suiker acquisition

The Netherlands Competition Authority (NMa) will further investigate the merger of the Koninklijke coöperatie Cosun U.A. and CSM Suiker B.V. The undertakings' very high joint market shares in particular, may restrict competition in the Dutch market for the production and sales of sugar. The NMa has therefore decided a license is required for this merger.


If parties decide on submitting a license application, the NMa will more deeply investigate the geographical size of the sugar market. This will take into account buyers and competitors especially. Due to the coming into effect of the Common Market Organisation for the sugar market on 1 July 2006, the main question to be addressed relates to whether or not this market will comprise an area beyond the boundaries of the Netherlands. Such an analysis is important to establishing the joint position of parties in the sugar market.


On the parties' submission of a license application, the NMa is to decide within a period of 13 weeks whether or not to clear the merger.


In case of mergers and acquisitions exceeding specified turnover thresholds, the NMa assesses the possible creation or strengthening of a dominant position. Such a dominant position may have detrimental effects on the price, quality and diversity of supplies. If so, the NMa may either impose conditions on, or oppose, a merger.