The Netherlands Authority for Consumers and Markets (ACM) has granted approval for Foresco to acquire its competitors, DWP and Vierhouten, both of which are involved in the wooden pallet market. The ACM does not anticipate any price increases resulting from this acquisition, as it has determined that Foresco will continue to face adequate competitive pressure from other pallet sellers in the market. Buyers will still have various alternatives available to them beyond Foresco.

In its assessment, ACM has taken into account Foresco's broader acquisition strategy, which has seen the company become the market leader in the Netherlands through a series of smaller acquisitions over recent years. This approach, known as 'serial acquisitions' or 'roll-up acquisitions', can potentially have similar negative impacts on competition as a single large acquisition. Out of 17 acquisitions made by Foresco since 2019, only four were previously assessed by ACM, while the remaining 13 fell below the turnover thresholds that require mandatory notification.

This marks the first instance where ACM has evaluated an acquisition in the context of a serial acquisition strategy. The authority has outlined its assessment framework, which considers not only the immediate effects of the current acquisition but also the cumulative effects of all prior acquisitions, including those that were not formally notified. Despite the investigation, ACM found insufficient evidence to suggest that Foresco's past acquisitions have negatively impacted the market or that the company would continue its acquisition strategy in a manner that could harm competition.

ACM's concentration control process is designed to ensure that mergers, acquisitions, and joint ventures do not adversely affect market competition. The authority evaluates whether sufficient competition will remain in the market both immediately after the acquisition and in the years to follow. This is crucial for maintaining high-quality products, competitive pricing, and fostering innovation, ultimately benefiting consumers.