Stringing beads: that is what the Genk company Foresco is suspected of. By making various smaller acquisitions in the Netherlands, their position has become so strong that fair competition is not possible. At least, that is what the local competition watchdog ACM suspects. Jan Ponnet and Cedric De Quinnemar don’t let it get to their hearts: they are convinced that the competition authorities will also give the green light for the next acquisitions.
Foresco in Genk is active in wooden packaging and transport materials, mainly new pallets. The company led by Jan Ponnet and Cedric De Quinnemar is growing rapidly, not least due to the various acquisitions made in Belgium and the Netherlands. As always with a takeover, it must be approved by the competition authorities. Often just a formality. But now the Dutch watchdog ACM is playing hardball and the most recent takeover of Foresco has been put on hold.
According to Logistiek.nl ACM (Consumer and Markets Authority) has now launched an investigation into the practice of ‘bead stringing’. It means that a company – such as Foresco in this case – makes a series of smaller acquisitions for which no approval is required. However, if you add up all those little things (‘the beads’) you end up with a big picture that may disrupt fair competition in the sector. Foresco has already acquired 15 pallet sellers in the Netherlands, generating a turnover of around 300 million euros. This makes the Genk company the market leader among our northern neighbors. And so ACM would like to take a closer look…
CEO Jan Ponnet is not really impressed. He is convinced that the law has always been acted upon and that subsequent acquisitions will also be given the green light. So will definitely be continued!
