Companies Anticipate NMa Merger Control

The Netherlands Competition Authority (NMa) has studied the effects of its merger control.

The research results show that almost 20 percent of intended mergers are not pursued or proceed in an amended form, due to companies and their advisors taking into account a possible intervention by the NMa while drawing up their merger plans. The management consultancy company Twynstra Gudde interviewed sixteen competition lawyers from a number of law firms. The lawyers qualified NMa decisions as highly transparent and predictable. As a result, they are able to make an adequate assessment of NMa's review policy beforehand.

About twelve percent of companies' merger and concentration plans (15 mergers per year) proceed in an amended form because of the anticipation effect. In about six percent of all initiatives (7,5 per year) interested parties cancelled plans of their own accord, due to the anticipation effect in particular.

According to the research results, the anticipation effect has improved over the last few years. Companies seem to anticipate NMa review decisions by refraining from further concentration and maintaining the status quo or by adjusting their plans in accordance with their assessment of NMa review policy.

The research report may be consulted via the NMa website as from today. It is available both in Dutch and English.