NMa clears merger care organisations

The Netherlands Competition Authority (NMa) has cleared a merger between the (home) care organisations Meander and Evean, and GGZ Drenthe, a mental health care organisation. The merger combines the activities of the parties in the provinces of Noord-Holland, Overijssel, Groningen, Drenthe, Gelderland and Flevoland.

Though the merger creates the second largest care organisation in the Netherlands in terms of turnover, an NMa investigation has pointed out that the combined positions of the parties in the area of home care and care services provided by nursing and convalescent homes do not lead to the creation or strengthening of a dominant position.

On the basis of data reflecting the origin of clients, it appears that the care services provided by the nursing and convalescent homes of Meander and GGZ Drenthe do not overlap geographically. Should the geographic market be more broadly defined, the NMa has concluded that consumers may still choose from a sufficient number of alternative providers. The NMa has also concluded that in the area of home care services in the province of Drenthe, the addition of GGZ Drenthe to Icare (part of the Evean Group) is of such limited scope that no restriction to competition is foreseen.

During its investigation, the NMa has consulted the Netherlands Care Authority (which is currently in the process of being established). The Netherlands Care Authority has endorsed the NMa's conclusions in its written point of view.

In instances where mergers and acquisitions exceed specified turnover thresholds, the NMa assesses whether the merger or acquisition creates or strengthens a dominant position. Such a dominant position may have detrimental effects on the price, quality and diversity of supplies. In that case the NMa may impose conditions on, or decide not to clear, a merger.