NMa clears acquisition of home care provider TZG by TSN

The Netherlands Competition Authority (NMa) has attached conditions to the acquisition of Dutch home care provider Stichting Thuiszorg Groningen (TZG) by rival Thuiszorg Service Nederland Holding B.V. (TSN).

TSN can acquire TZG’s activities only if it has hived off some of its domestic-services activities in five municipalities in the northern area of Groningen, and transferred these to competitors. This decision prevents TZG and TSN’s positions in the Groningen area from strengthening further.

Already in the notification phase did TSN propose to solve the identified competition concerns. TSN proposed to transfer some of its domestic-services activities in the municipalities in question to different competitors: to Zorgkompas in the towns of Hoogezand-Sappemeer, Leek, and Haren, to Zorggroep Groningen in the town of Veendam, and to Zonnehuisgroep te Noord in the town of Menterwolde. The NMa considers these care providers suitable buyers. These providers are well-established businesses, and are robust enough to run the yet-to-be transferred business activities competitively against TSN. The municipalities involved have indicated that they agree with the found solution.

TSN is part of facility-service provider Asito Dienstengroep SE, and is active across the Netherlands in home care, facility services, and HR solutions. After the bankruptcy of its parent company Meavita, Stichting Thuiszorg Groningen was transferred to Stichting Continuering TZG. TZG is a player in the Groningen area, and offers domestic-care services, as well as extramural and intramural care under the Dutch Act on Exceptional Medical Expenses (AWBZ).

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 (in Dutch) will be published on the NMa’s website as soon as possible (www.acm.nl).