Commitment decision in the cash management market
In connection with a non-notifiable transaction, the Danish Competition and Consumer Authority investigated whether an ancillary agreement to Loomis Danmark A/S’ acquisition of Bankernes Kontantservice A/S could be regarded as anti-competitive. However, no violation was established, and the investigations have now been closed subject to clarification of the wording of the agreement.
Decision of 20 December 2017 - Loomis’ agreement with banks for the purchase of cash handling services
By partner Morten Kofmann and attorney Sonny Gaarslev
Background
In August 2016, Loomis Danmark A/S (Loomis) acquired Bankernes Kontantservice A/S (BKS). BKS was owned by 61 Danish banks that were all customers in the company. The transaction was not subject to merger control.
In connection with the transaction, Loomis and 50 of the selling banks entered into an addendum as an ancillary agreement to the customer agreements that existed between the banks and BKS. The addendum confirmed the customer agreements for a transitional period of three years and five months from the date of closing, stating explicitly that there were no exclusivity obligations.
Following a complaint, the Competition and Consumer Authority examined whether the addendum was capable of restricting competition. However, the Authority never reached any conclusion in this respect, but closed the case based on a commitment offered by the parties.
The commitment
As part of the commitment, the parties entered into a revised version of the addendum in which it was clarified that the addendum is a framework agreement without any purchase obligation.
The Authority accepted the commitment, finding that it eliminated the preliminary concerns that had been expressed in relation to the addendum.
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