NMa clears Achmea / Agis merger

The Netherlands Competition Authority (NMa) has approved the merger between Vereniging Achmea and Onderlinge Waarborgmaatschappij Agis Zorgverzekeringen U.A. and Stichting Agis. The NMa concludes that the merger does not create a dominant position that would restrict competition. The merger will make Achmea-Agis the largest health insurance company in the Netherlands, with a market share of approximately 30 per cent.

As part of its investigation, the NMa assessed to what extent the merger may create a dominant position in the health insurance market. At a national level, the NMa found that various large health insurance companies with considerable market shares, such as UVIT, CZ and Menzis, will remain active alongside the new combination. Judging by the presence of these competitors and a number of other national players, the NMa does not expect the merger to restrict competition. Also, the health insurance market is in a state of permanent flux, partly due to an increasing number of insurance takers choosing to join collective insurance schemes. Health insurance companies, therefore, will remain in competition for the favour of the consumer in years to come. Taking this into account, the NMa does not consider it likely that a collective dominant position may emerge.

The NMa has observed that the newly combined company will have a relatively strong market position in the provinces of Utrecht, Noord-Holland and Flevoland. Still, the Authority has concluded that this situation will not adversely affect competition in these markets owing to competitive pressure exerted by other domestic players, a supply of nation-wide insurance policies and the importance of collective insurance schemes which are being marketed nation-wide.

The NMa consulted the Dutch Health Authority in the course of its investigation. The latter has endorsed the outcome of the decision. The merger decision will be made available on the NMa website as soon as possible.

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 adverse effects on the price, quality and diversity of supply. If so, the NMa may either impose conditions on, or oppose, a merger.