4th UPDATE: Spain Cement Cos Face EU, Local Antitrust Probes
24 September 2009 - 1:33AM
Dow Jones News
European Union and Spanish antitrust officials have carried out
surprise inspections at the premises of companies producing cement
and related building products in Spain, the European Commission and
Spain's National Competition Commission, or CNC, said
Wednesday.
The E.U. and Spanish probes are separate, spokespeople for the
CNC and the European Commission said, though they are targeting
some of the same companies on suspicion of taking part in
price-fixing cartels.
The commission spokesman said its Spanish inspections were done
"in the context of a broader investigation begun last
November."
At that time, the commission had said it carried out inspections
at cement companies suspected of cartel practices in several
unnamed E.U. countries.
The CNC said its inspections represent a preliminary step and
don't necessarily mean the beginning of a formal proceeding. In the
event that illegal practices are proved, the CNC could impose
penalties of up to 10% of the total sales volumes of any companies
involved.
Cement giant Cemex SA (CX) said in a filing with U.S. regulators
that Spanish antitrust authorities searched the offices of its unit
in Spain.
Cementos Portland Valderrivas SA, which is controlled by
construction company Fomento de Construcciones y Contratas SA
(FCC.MC), "is one of many companies under investigation and it is
cooperating" with authorities, said a company spokesman.
Swiss cement company Holcim Ltd. (HOLN.VX) confirmed its offices
in Spain have been searched in the context of the E.U. probe,
adding it is fully cooperating with authorities.
A spokeswoman at local producer Cementos Molins said the company
hasn't been formally notified of any investigation.
-By Carolyn Henson and Jonathan House, Dow Jones Newswires; +32
2 741 1481; carolyn.henson@dowjones.com (Martin Gelnar in Zurich
and Pablo Dominguez in Madrid contributed to the article.)