PostNL can go ahead with its €130 million takeover of smaller mail delivery rival Sandd after the Dutch government overturned a regulatory veto on the deal but imposed several conditions and protections.
Mona Keijzer, the Deputy Minister of Economic Affairs and Climate Policy, on Friday approved the merger of the two postal networks, paving the way for the full completion of the transaction between PostNL and Sandd.
The two companies had appealed to the government for a final decision after the Dutch competition authority ACM blocked the deal earlier this month on the grounds that it would re-establish a mail monopoly in the Netherlands, leading to higher prices for customers.
But according to Keijzer, the combination of both postal networks is necessary to ensure continuity. As a result, postal services throughout the Netherlands will continue to be reliable, accessible and affordable, while also benefiting the job security of thousands of mail deliverers.
The deputy minister granted approval for the deal under Article 47 of Dutch competition law, which permits a decision based on a broader consideration of social interests.
She emphasised, however, that the approval came with various conditions aimed at safeguarding the interests of all stakeholders. “The stamp price may not rise faster than the actual costs incurred for this. PostNL is also not allowed to refuse access to its network to other postal companies. That is why I only allow the acquisition with regulations. As a result, I can also limit the price rise for business letters,” she said.
On October 1, PostNL and Sandd held a press conference to present details of how the acquisition and integration of Sandd’s network will take place.
The two companies said the consolidation provides greater job security for thousands of postal deliverers and will help cushion the decline of the postal market in a socially responsible way. Sandd’s postal deliverers will all be offered jobs with PostNL, while PostNL will find alternative positions within the company for other Sandd people or look for alternative solutions. PostNL will also continue collaboration with sheltered workplace companies.
PostNL has drawn up a solid plan to help it complete the integration of both networks in the first six months of 2020. Over the next couple of months, it will consult with Sandd customers to gradually absorb their volumes into the PostNL network, with the bulk of the migration scheduled to take place at the beginning of 2020. Once the integration is completed, Sandd’s brand and stamps will be discontinued.
Herna Verhagen commented: “This is a key strategic step towards a robust and stable mail business. We are very aware of the responsibility that comes with our leading position in the postal market, which means that we will continue to carefully weigh the interests of all stakeholders to help us create both financial and social value. The consolidation will bring greater quality and continuity to senders and consumers, and enhance job security for our postal deliverers. We’ll be continuing our existing price policies of the past few years.”
Ronald van de Laar, Managing Director of Sandd Holding, added: “Looking back on two decades of Sandd, I can only say that I’m extremely proud of and grateful for what we’ve achieved together. That said, the time has now come for a single, robust Dutch postal network that offers consumers, businesses and our workforce the best long-term solution. We have agreed a solid way forward for the integration of our networks and for the future of our people.”
With mail revenues of €1.7 billion and 1.8 billion mail deliveries in 2018, the former monopolist is much bigger than its only effective nationwide competitor, which generated revenue of €200 million from 720 million postal deliveries last year.
