Dutch care providers GGZ Delfland and PerspeKtief withdraw their merger license application
Mental health care provider GGZ Delfland and social-services center group PerspeKtief have withdrawn their application for a merger license. The reason for the withdrawal has been the anticipated negative reaction of the Netherlands Competition Authority (NMa) to their merger plans, since the NMa was planning to announce next week that it would block the merger.
In March 2010, the NMa carried out a more in-depth investigation into the effects of a potential merger between GGZ Delfland and PerspeKtief. That investigation focused in particular on the problems that the merger could create with regard to supportive housing in the area of the city of Delft. The merger between the parties could impede competition, thereby limiting their clients' options. Both parties subsequently put forward proposals (so-called remedies) to the NMa, but they were unable to convince the NMa that these proposals would be able to take away the competition concerns. The Dutch Healthcare Authority (NZa) has issued an opinion on this case, which is in line with the NMa's assessment.
Since 2004, the NMa has ruled in more than 100 concentration cases in the health care industry. There have been seven concentration cases in which the merging parties themselves decided to suspend the merger plans, in part because of the NMa's objections. In eight other cases, the NMa has approved the plans to concentrate, after parties in those cases had submitted remedies to take away the concerns the NMa had identified.