Watchdog blocks takeover of Amsterdam waste processor AEB

The Netherlands Authority for Consumers and Markets (ACM) has prohibited waste management firm Afvalprocessing Rijnmond from taking over Amsterdam waste processor AEB. The acquisition would create a company that is too powerful and would lead to higher prices, possibly increasing the cost of household waste processing, if the takeover were allowed to go through, the ACM said.

"Municipalities in the provinces of Noord-Holland, Zuid-Holland and Utrecht, in particular, would have to pay more after the merger of these companies," said ACM board chair Martijn Snoep. He explained that there are not enough alternatives to AEB and AVR in the west of the country. "And it costs more money to transport household waste to waste processors further away. The AVR/AEB combination could therefore increase the prices for the processing of household waste. For people in those municipalities, the waste levy would then rise."

AVR previously made a bid of 450 million euros for the Amsterdam firm, which had a turbulent period. In 2019, due to issues including overdue maintenance and internal wrangling, the company was in such a tight position that four of the six incinerators had to be shut down and a reservoir of waste was created from clients in Amsterdam, but also other parts of the country. The municipality provided financial support several times to keep AEB afloat and eventually decided to put the company up for sale.

Amsterdam alderman Reinier van Dantzig said he was disappointed the judgment from the competition watchdog. "This is of course also very annoying for AEB and its employees. As an outcome and because it is now again uncertain what the future for AEB is," he wrote in a letter to the capital’s city council. The municipality does not agree with ACM's reasoning. But although there is technically still a possibility for AVR to appeal, that appeal would not cause the immediate suspension of the ACM's decision, he said. The deal will therefore definitely not go through, said the alderman.

Van Dantzig now wants to make a new decision about the future of the waste processor within a few weeks. "As a result of ACM's decision, the choice again lies for whether the municipality wants to keep AEB or still want to sell it," he explained. He also pointed out that Amsterdam residents will not notice a change. AEB will continue to process waste in the same way as before, he said. There will also be no change to the heat supply by the company to Westpoort Warmte.