The Netherlands Authority for Consumers and Markets (ACM) has concluded that a more detailed investigation is required into the proposed acquisition of VolkerWessels by HAL Investments. The transaction would bring VolkerWessels under the same ownership as major construction firms such as Boskalis and Van Wijnen, creating a powerful group with a significant footprint in Dutch infrastructure markets.
Following its preliminary review, the ACM identified potential risks to competition, particularly in civil engineering, road construction, and hydraulic engineering. The authority is concerned that the merger could reduce competitive pressure, potentially resulting in higher prices, fewer choices for public and private clients, and diminished opportunities for smaller competitors.
A central concern relates to tenders for large and complex infrastructure projects. Both Boskalis and VolkerWessels are established players with the expertise and scale required to execute multidisciplinary projects, including those commissioned by Rijkswaterstaat. The combined entity would be capable of independently covering nearly all aspects of such projects, potentially limiting the need for partnerships and reducing competitive dynamics in bidding processes.
Feedback gathered during the initial investigation indicates that contracting authorities are apprehensive about reduced bidder diversity and possible price increases. At the same time, competing construction firms have raised concerns about fewer collaboration opportunities, which are often essential to participate in large-scale tenders.
The ACM also identified competition concerns in asphalt production and asphalt milling. Post-transaction, the combined entity would hold a strong position in several regions, including Amsterdam, Rotterdam, and Central Netherlands, where both companies already operate asphalt plants. The integration of asphalt production and milling activities under a single ownership structure could limit supply options for road builders, potentially leading to higher input costs or reduced availability.
Given these findings, the ACM has decided to initiate a Phase II investigation. This in-depth review will assess the full competitive impact of the transaction before a final decision is made. Should the parties wish to proceed, they must formally apply for a permit, triggering the next stage of the merger control process.