NMa says planned acquisition of Dutch mental health care provider Emergis requires a license

An initial investigation into the planned acquisition of mental care provider Emergis by rival provider Parnassia Bavo carried out by the Netherlands Competition Authority (NMa) has revealed that competition may be restricted as a result thereof. That is why the NMa has ruled that both providers must apply for a license first before going through with the acquisition. If they do, the NMa will launch an in-depth investigation into the merger’s effects on competition, and will then be required to determine within 13 weeks whether or not the acquisition is allowed.

Emergis is the biggest provider of mental health care services in the southwestern Dutch province of Zeeland. The NMa has found that Parnassia Bavo is currently one of Emergis’ major competitors through its PsyQ location in the city of Goes. One of the acquisition’s results would be PsyQ’s no longer being an independent alternative for patients seeking outpatient mental health care for adults and seniors. In addition, Parnassia Bavo enjoys a strong position in the adjacent province of South Holland. With the acquisition, Parnassia Bavo would no longer be a major competitor to Emergis. This could affect affordability and quality of mental health care in Zeeland.




If parties decide to apply for license, the NMa’s in-depth investigation will focus on, among other aspects, the level of competitive pressure other mental-health care providers in Zeeland exert on Emergis. Furthermore, the NMa will examine what effect potential entrants into the Zeelandic market could have. Finally, the NMa will assess whether patients in Zeeland would be left with enough mental health care options.

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. In such an event, the NMa can set conditions to the planned merger, or block the merger altogether.