Application of Belgian merger control on creation of innovation hub

Belgium
Available languages: FR, NL

On 12 August 2024, the Belgian Competition Authority (BCA) approved the acquisition of joint control over Community Building Arenberg BV by four key players – Participatiemaatschappij Vlaanderen, Flanders Make, the city of Leuven and Katholieke Universiteit Leuven.

The project’s aim is to develop a 17,500 m² community building within Arenberg Science Park located in Leuven. Community Building Arenberg BV will build and manage a new innovation hub that will provide office spaces for rent, primarily targeting high-tech companies seeking to establish themselves in Leuven. It will also feature shared communal areas for companies in the science park, further enhancing collaboration and innovation in the area. The new community building will provide essential infrastructure to attract high-tech companies, positioning Leuven as a growing hub for technology and science.

The partners of the joint venture are:

  1. Participatiemaatschappij Vlaanderen (PMV): PMV is an investment company of the Flemish government, focusing on SMEs, large enterprises and various projects ranging from real estate to infrastructure and energy. PMV is also active in sustainable and socially relevant real estate developments, particularly those of historical importance.
  2. Flanders Make: This non-profit organisation is a strategic research hub for the Flemish manufacturing industry. By connecting researchers and supporting SMEs and large manufacturing companies, Flanders Make promotes innovation and international competitiveness.
  3. City of Leuven: Leuven is the capital of Flemish Brabant and a forward-thinking municipality. Its multi-year plan (2020-2025) prioritises sustainability, circularity and entrepreneurship, with active investments in high-tech and creative economy projects.
  4. Katholieke Universiteit Leuven (KU Leuven): KU Leuven is a Flemish university active in the development of high-tech clusters, especially through its science parks in Arenberg and Haasrode. KU Leuven works closely with spin-offs and local authorities to foster innovation.

This investment represents a collaborative initiative between government entities, academia and industry, whose aim is to foster innovation and economic growth in Leuven.

Despite the public nature of the partners concerned, the project falls within the scope of merger control as the management of such a building constitutes an economic activity under competition law. Indeed, for such projects, universities, municipalities, intermunicipal associations and non-profit entities qualify as undertakings.

The concentration was notified on 22 July 2024, with approval following a simplified procedure. The BCA considered that the project did not raise any competition concerns due to the low market share it would generate for the new joint venture.