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The French anti-trust authority (DGCCRF) announced today that it has imposed fines totaling almost €600 million on French steel distributors. KDI SAS (a subsidiary of Klöckner & Co SE) was fined €169 million.
The companies were accused of taking part in anti-competitive price-fixings in France from 1999 to 2004. Contrary to its previous practice, the French anti-trust authority obviously used global sales of Klöckner & Co as the basis for the calculation of the fine, even though the violations were committed exclusively by the French subsidiary, KDI SAS, and only affected the French market. For this reason, KDI SAS will appeal the fine with the aim of significantly reducing the amount and of obtaining a suspension of payment until a final judgment has been rendered.
The fine will negatively impact the 2008 group results of Klöckner & Co SE by a total of €79 million. Reserves had been made in the amount of €20 million. In addition, Klöckner & Co possesses a compensation claim totaling €70 million towards the former owners of the Klöckner & Co group resulting from the sale of the group to today’s Klöckner & Co SE in 2005.