NMa approves acquistition of veal producer Alpuro by rival Van Drie

The Netherlands Competition Authority (NMa) today approved the acquistition of Dutch veal producer Alpuro Holding by rival producer Van Drie Holding. The NMa has come to the conclusion that it is unlikely that Van Drie's acquisition of Alpuro would have adverse effects on retail veal prices.

Both Van Drie and Alpuro are active players at different steps of the veal production chain, such as buying and fattening newborn calves, buying fattened calves and young cattle for slaughtering, and selling veal and young beef. After extensive research, the NMa has determined that veal production and sales is a European market. It came to this conclusion in part because of the fact that most of the veal slaughtered in the Netherlands is exported, as well as because of the alternatives Dutch buyers have to buy veal from foreign suppliers. The combined market share of Van Drie and Alpuro on this market is 17 per cent, based on which the NMa is of the opinion that this acquisition is unlikely to significantly impede competition on the European market for the production and sales of veal. On top of that, several big Belgian, French and Italian players are also active, next to Van Drie and Alpuro.


In its assessment of the planned acquisition, the NMa also examined whether the acquisition's effects on Dutch cattle breeders and traders could have a negative impact on the retail sales market. According to the NMa, a very big Dutch calf-slaughtering player would be created, which, to a certain degree, may result in a concentration of buyer power. The NMa has also established that Dutch cattle breeders and traders would lose an alternative for calf-slaughtering. However, the NMa believes it is unlikely that Van Drie and Alpuro would be able to adversely affect retail veal prices. Both parties have a modest market share on the European sales market, and foreign slaughterhouses rely on Dutch fattened calfs only to a small degree.