UpdateEC fines Bayer, Zeon for price-fixing

23 January 2008 11:59  [Source: ICIS news]

(Adds quotes from Bayer and Zeon in paragraphs 8-11)

 

PARIS (ICIS news)--The European Commission (EC) has fined Bayer and Zeon €34.23m ($49.9m) for their part in a price-fixing cartel for nitrile butadiene rubber (NBR), said EC Competition Commissioner Neelie Kroes on Wednesday.

 

Between 2000 and 2002, German chemical giant Bayer and the Japanese firm Zeon raised or stabilised prices through a series of meetings and other illicit contacts, said the EC.

 

Bayer was fined a total of €28.87m and Zeon €5.36m.

 

The EC reduced both companies fines - Bayer's by 30% and Zeon's by 20% - because they co-operated with the investigation under the commission's 2002 leniency notice. However, as a repeat offender, Bayer's fine was subsequently increased by 50%.

 

"This is the fourth cartel decision in the synthetic rubber industry in just over three years," said Kroes. "I hope that this is the last.” 

 

“Buyers of synthetic rubber should be concerned about how much these cartels have cost them," she added. "And shareholders should be concerned about how much the fines have cost them."

 

NBR is a type of synthetic rubber made from unsaturated copolymers of acrylonitrile and butadiene. Resistant to petroleum fluids, and having good physical properties and temperature range, NBR is widely used in the motor industry.

 

Bayer said the fine was partially covered by provisions in its balance sheet.

 

"The company very much regrets the legal violations in the past. Violations of this corporate compliance programme will not be tolerated," it added.

 

The company has not ruled out appealing the decision and will not comment further until proceedings had concluded.

 

Zeon said it would make a decision on "appropriate action" after studying the full decision.

 

($1 = €0.68)

 

By: Philippa Jones
+44 20 8652 3214

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