NMa clears concentration Essent Kabelcom and Casema/ Multikabel
The Netherlands Competition Authority (NMa) has given the all-clear for the sale of Essent Kabelcom to investment companies Cinven and Warburg Pincus. These investment companies also own Casema and Multikabel. The competition authority has concluded after investigation that the concentration will not create or strengthen a dominant position that restricts competition.
Essent Kabelcom and Casema/ Multikabel, in combination, provide services to 55 per cent of Dutch homes that subscribe to cable television. The concentration creates the largest cable company in the Netherlands. Consumer choice remains unaffected, as the regions in which cable companies operate do not overlap. It may therefore safely be assumed that consumer prices will not increase.
The NMa investigation focused on the issue whether or not the stronger buying position of companies vis-à-vis programme providers may, as a result of the concentration, adversely affect the choice of television channels provided to consumers. This proves not to be the case. The investigation also shows that the concentration will not adversely affect emerging alternatives, such as digital television and DSL television.
Within their own region, Essent Kabelcom and Casema/ Multikabel provide radio and television services, broadband internet services and telephony services via the cable network. Casema is active in the northern part of the provinces of Zuid-Holland, Utrecht and Noord-Brabant, Multikabel operates in the province of Noord-Holland and Essent Kabelcom is active in the provinces of Groningen, Friesland, Drenthe, Overijssel, Noord-Brabant and Limburg.
In instances where mergers and acquisitions exceed specified turnover thresholds, the NMa assesses whether the merger or acquisition creates or strengthens a dominant position. Such a dominant position may have detrimental effects on the price, quality and diversity of supplies. In that case the NMa may impose conditions on, or decide not to clear, a merger.