The accident occurred in the eastern city of Oss, near the German border.
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Police said the cargo bike was electrically powered and had been transporting the children from a pre-school centre to school when the accident occurred. There were numerous witnesses, including other school-age children, police said.
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The two injured people have been taken to a nearby hospital, where they are in critical condition.
“We have informed the families involved of this terrible news,” police said in a statement. “We are investigating how this could have happened.”
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