Lineage Logistics' take over of the Kloosterboer Group in the Netherlands will be allowed. After the acquisition, there will still be sufficient competition. That is for refrigerated food transport, processing, and storage. That is what the Netherlands Authority Consumers and Markets (ACM) reports in a press release.
Lineage is a global player in the refrigerated food transport, processing, and storage arena. They have several cold stores, but not any frozen goods stores in the Netherlands. These warehouses are located in the country's interior.
They use them to store things like potato products, vegetables, ice cream, and baked goods products. The Kloosterboer Group has both cold and freezer warehouses. These are mostly in and around Dutch ports. They use them mainly for fish, fruit juices, and potato products.
Both parties do potato product storage. At first glance, it seems Lineage will have a strong position in this segment with a lot of storage capacity. However, the acquisition changes little in this segment's competitive environment. Most of the capacity is tied up in long-term contracts. Sufficient alternatives will remain for potato processors after the acquisition. That is what the ACM's investigation has also shown.
This takeover will not likely allow Lineage to hike prices. Neither can they reduce quality or be less innovative. So, the ACM has approved this move.
What is the ACN's role during mergers and acquisitions?
Each merger or takeover raises the question of if enough competition will remain immediately after the transaction. Competition ensures that products are marketed at good prices. It stimulates quality and innovation too. Thus, the ACM assesses, in advance, whether the companies may merge or acquire each other. The Authority checks whether the markets will continue to function well. That is for people and businesses, currently and in the future.
Source: ACM