NMa clears BinckBank's acquisition of Alex

The Netherlands Competition Authority (NMa) has cleared BinckBank's proposed acquisition of online investment bank Alex. According to the NMa, the acquisition will not pose restrictions to competition in the market for intermediary transaction services for private investors. Apart from the post-merger combination, private investors have a sufficient choice of alternative providers. Furthermore, the market is relatively open to new providers.

Brokerage involves the buying and selling of shares on behalf of private investors. Brokers do not distinguish between various ways in which orders are given. An investor may give an order via the Internet, by telephone, in writing or orally at a bank's premises. Apart from parties concerned, other players are active, including ABN AMRO, ING/ Postbank, Rabobank and SNS Bank. In addition, new (foreign) entrants such as Online Trader (Van der Moolen), E*Trade and Today's Brokers offer this kind of services.

The NMa has based its assessment on monitoring research into the financial sector, published annually in the NMa's Financial Sector Monitor. In addition, the NMa interviewed competitors and representatives of the Dutch Investors' Association [Vereniging van Effectenbezitters]. Interviewees indicated that the market for intermediary transaction services for private investors does not have high entry barriers.

The merger decision will be made available on the NMa's website as soon as possible (www.acm.nl).