After investigation, NMa approves joint venture in Dutch industrial-water industry

Having carried out a further investigation, the Netherlands Competition Authority (NMa) has approved the creation of the joint venture Evilim Industriewater B.V. by Dutch water companies Evides Industriewater B.V. and N.V. Waterleiding Maatschappij Limburg (WML). The NMa believes that industrial-water buyers will still have enough alternatives after the creation of this joint venture.

Commissioned by the NMa, research agency EIM carried out a market study into industry water in the Netherlands. According to the study's results, an overwhelming majority of industrial-water buyers collect and supply industrial water themselves, meaning they are not dependent on industrial-water suppliers. Moreover, only after the creation of the joint venture will Evides Industriewater become active in the southern Dutch province of Limburg. The concentration will therefore not have any anti-competitive consequences on this market. On the market for water treatment, buyers will have plenty of alternatives, in part because of the presence of several large international players.


In its decision, the NMa makes a distinction between the market for industrial-water collection and the market for water treatment. The NMa initially made a distinction between low-quality and high-quality industrial water. After further investigation however, it turned out that a chain approach is more appropriate when analyzing the competitive situation on this market. At the heart of this approach is the process of collection, supply and treatment. And it also perfectly dovetails with the way buyers look at the industrial-water market.


During the NMa's investigation, buyers have raised the question of whether WML would continue to supply drinking water after the creation of Evilim Industriewater. WML is actually legally bound to do so. In addition, the new Drinking Water Act, which has recently been submitted to the Dutch Senate for approval, sets rules to the commercial activities of drinking water companies.



Merger review
When reviewing joint ventures, 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 position can have negative effects on prices, quality and range of the products or services in question.