Dutch facility-service provider ADG hives off home care activities in Zwolle for acquisition

The Netherlands Competition Authority (NMa) has imposed conditions on Dutch facility-service provider Asito Dienstengroep B.V. (ADG) before it may acquire Dutch home-care organization ThuishulpNederland B.V. ThuishulpNederland is part of the Evean Group and is solely active in the home-care industry. The NMa has decided that ADG can acquire these activities from Evean only after ADG has completely hived off its home-care activities in the Dutch city of Zwolle. ADG must transfer at least 90 per cent of these activities to home-care provider De Nieuwe Zorg Thuis. This decision by the NMa prevents the strengthening of the position of ThuishulpNederland in Zwolle.

The NMa made a detailed assessment of the effects of the intended acquisition both at the municipal level as well as at the regional level. The assessment revealed that the concentration would increase the already high market share of ThuishulpNederland in Zwolle, which could have significantly impeded effective competition in this city. ADG therefore proposed to transfer almost all of its home-care activities in Zwolle to its competitor De Nieuwe Zorg Thuis, which is a suitable buyer according to the NMa. De Nieuwe Zorg Thuis is a Zwolle-based player, which has sufficient resources to continue the activities it will acquire from ADG and will pose sufficient competition after the concentration. The municipality of Zwolle endorses the chosen solution.

ThuishulpNederland B.V. is part of the Evean Group and is active in the home-care industry across the Netherlands. ADG is predominantly active in the eastern part of the Netherlands. ADG is also active in the facility-service and HR-solutions industries.

The NMa has notified the Netherlands Healthcare Authority (NZa) of the proposed acquisition. The NZa has not issued an advice in this case, because the case mainly concerns home-care activities, which no longer fall under the regulatory tasks of the NZa since the introduction of the Social Support Act (Wmo).

Merger review
When reviewing mergers and acquisitions, the NMa assesses whether effective competition in the market is significantly impeded, particularly when a dominant position is created or strengthened. Such a dominant position can have negative effects on the price, quality and range of the products or services offered on the market. It is important to have competition, because it encourages organizations to put more effort in offering more and better products and services. Competition offers consumers considerable advantages: competition generally leads to greater freedom of choice, higher quality and lower prices.

The merger decision will be published on the NMa website as soon as possible (www.acm.nl).