The Dutch Investment Screening Bureau (BTI) cited a direct risk to public interest, advising the government to block US-based Kyndryl's acquisition of Dutch cloud provider Solvinity Group BV. This intervention marks a significant shift in the Netherlands' foreign investment approach.
Historically, the Netherlands promoted an open market. Now, it actively blocks foreign investment in critical digital infrastructure, citing national security. The Netherlands' shift from promoting an open market to actively blocking foreign investment in critical digital infrastructure signals a new era for international tech mergers.
Companies pursuing international tech acquisitions, particularly in critical digital infrastructure, will likely face increased national security scrutiny and potential governmental blocks across Europe. This action definitively pivots Europe from open market principles.
The Specifics of the Blocked Acquisition
The Dutch government blocked American IT giant Kyndryl from acquiring Dutch cloud provider Solvinity Group BV, according to TechCrunch and Bloomberg. This consistent reporting confirms the target: a cloud services provider deemed critical. The block signals that even established players like Kyndryl are not exempt when the target is foundational infrastructure.
Public Interest and Digital Identity Concerns
The Investment Screening Bureau (BTI) advised blocking the acquisition, citing a risk to public interest, according to NL Times. This broad justification offers governments wide latitude for intervention. Solvinity functions as a key online identification IT supplier; the Dutch government also blocked a separate US acquisition of a digital ID company, according to Euractiv.
