PostNL and Sandd to ask Ministry of Economic Affairs and Climate Policy to approve merger of postal networks

The Hague, the Netherlands, 5 September 2019 – PostNL and Sandd will ask the Ministry of Economic Affairs and Climate Policy to approve the merger of their postal networks, a next step after its licence application was rejected by the Dutch Authority for Consumers and Markets (ACM by its Dutch acronym).

PostNL and Sandd disagree with the analysis and argumentation of the ACM decision. Developments in recent years, including the strong decline of postal volumes and lower results, as confirmed by the information provided by PostNL and Sandd, speak for themselves.

The continuing decline of mail volumes makes it very hard for postal operators to sustain their profitability. Consolidation is essential if the country’s postal services are to be kept reliable, accessible and affordable, across both urban and rural areas, safeguarding a sustainable postal service for all, including the elderly and socially vulnerable groups.

Combining the volumes of the two networks will generate economies of scale, a vital factor to ensure continuity. Consolidation will also facilitate a responsible social response to the consequences of the ongoing decline in the postal market.

PostNL and Sandd will now apply for approval under Article 47 of Dutch competition law, which mandates the Ministry of Economic Affairs and Climate Policy to apply a different framework, and allow for a wider range of considerations to be taken into account based on public interest, including employment, continuity and affordability of the universal postal service.

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