EU Investigations At Several Cement Companies For Price Fixing
Investigations At Several Cement Companies For Price Fixing
HeidelbergCement is being targeted by the EU. The EU has launched an investigation against an alleged cement cartel. Eight cement companies are suspected to have driven up the prices. Heidelberg Cement is part of the circle of the accused.
As the EU Commission announced on Friday it has opened a formal antitrust suit against a number of active companies in the EU. They are suspected of illegal price fixing hit the market divided among themselves and restricted the import and export to have. Occupied the allegations were not. The Brussels competition watchdog had even carried out raids.
Cemex, Holcim and Lafarge
The European Commission did not call any company by name during the investigation. However, the companies did acknowledge their guilt. Cemex, the world’s third largest cement producer, had already announced on the night to be one of the companies concerned. The French group Lafarge and the Swiss cement giant Holcim also confirmed to belong to the circle of suspicion, HeidelbergCement also confirmed that it is one of the suspects. The Heidelberg-based company said on Friday though, was said to an old process in which there was in November 2008, the first investigations. At that time the premises had been searched. Dyckerhoff also belonged to the circle.
The antitrust allegations were from the EU but not yet concrete, according to the spokesperson of Heidelberg Cement. Also there is one left if the allegations. “We have done their own investigations have not confirmed the allegations,” said the spokesman.
Heidelberg Cement’s shares under pressure
The stock market sees less left. Dealers evaluate the news as a negative factor for the entire industry. The EU Commission should keep the company guilty, they are threatening fines of up to ten percent of their annual turnover. Heidelberg Cement shares will increase dramatically, according to the favorable market trend. The shares on Friday to slip down to four percent to 44.75 euros. Shares of Dyckerhoff, Holcim and Cemex hold but relatively good.
Norbert Kretlow, an analyst at Commerzbank, was not really surprised by the news. It should have long known that the EU Commission to evaluate the issue. Nevertheless, it might provide for additional uncertainty in the market was collusion in the cement sector, again and again. The Commission condemned example in 1994 an agreement to record penalties were among the next time still a Heidelberg Cement company also dubbed the Dyckerhoff and Alsen. The European Court of Justice had a record fine against a cartel of 42 companies and associations of the cement industry later halved to around 110 million € over.
