Dutch Court Overturns Decision To Block Bakery Merger

The highest administrative appeal court in the Netherlands recently annulled the decision by the Dutch regulator ACM to prohibit the transaction between two rival industrial bakeries due to a high combined market share in the Dutch rusk market. Contrary to earlier Commission decisions on food products, the ACM had concluded that the upstream rusk market included both branded and private label products. The court considered the ACM's market definition insufficiently substantiated and annulled the ACM's decision to block the merger. The parties are considering whether to claim damages from the ACM.

The ACM was concerned that the acquisition of Dutch baking company A.A. Ter Beek by rival baking company, Continental Bakeries, would result in a very strong player in the production and sales of rusks, with a combined market share of 70-80%. The ACM defined the relevant product market as consisting of rusks only, excluding other bread substitutes such as crackers and