NMa to Investigate Further the Sale of Part of AGA Gas to Air Products

The Dutch Competition Authority (NMa) has decided that a licence is required for the sale of part of the Dutch activities of AGA Gas B.V. to Air Products. After an initial investigation NMa has reached the provisional conclusion that an individual or collective position of power may arise or be strengthened on the market for industrial gases as a result of this takeover. This initial investigation revealed that the parties have a very strong position both on the markets for cylinder gases and together with one or two competitors on the market for bulk gases. NMa regards most of these markets as national markets, since hardly any cross-border deliveries take place. Certain groups of customers who purchase cylinder gases appear to be too small to right the balance. The markets are fairly closed since research has shown that, for instance, the barriers to entry are high.

AGA Gas is part of AGA AB, a Swedish company active in the area of the production and sale of industrial gases. Air Products is also active, for instance, on the Dutch market for the sale and production of industrial gases. The reason for the sale of part of the activities of AGA Gas is one of the conditions that the European Commission has stipulated with regard to the takeover of AGA AB by Linde. This condition requires AGA Gas to sell its cylinder activities in the Netherlands.

Any further investigations that are carried out will focus on the markets for the production and sale of industrial gases. After the parties have applied for a licence, NMa has thirteen weeks to carry out a in-depth investigation.

In 2000 NMa received almost 200 notifications of concentrations. In four cases in-depth research was carried out. In two cases this resulted in approval and in the remaining two cases conditions were imposed on the parties.