In a an antitrust ruling in Brazil, Holcim Ltd and Cimpor Cimentos de Portugal were among the six companies who were ordered to pay a combined 3.1 billion reais ($1.4 billion) for their alleged collusion to fix prices and divvy up clients in the cement business, Bloomberg reported. The six companies were also ordered to sell assets and face financing restrictions from government-backed banks after forming a cartel.
The ruling was handed out by Brazilian antitrust regulator known as Cade, and read by Cade president Vinicius Carvalho yesterday. The four others included Votorantim Cimentos SA and Intercement Brasil SA, formerly known as Camargo Correa Cimentos. The others are Cia. de Cimento Itambe and Itabira Agro Industrial SA.
According to Cade, the second-largest economy in the world has lost 1.4 billion reais yearly because the cement producers who have been controlling over 85% of the nations' cement market had hindered competition. The sx cement makers posted a combined yearly sales of 16 billion reais in Brazil in 2008, Cade had said.
In an emailed statement, Votorantim Cimentos reacted strongly to the verdict and said that it will be filing an appeal on the decision. The company said, "(The decision was) unjustified, lacking a legal base and unsupported by facts."
Holcim, on the other hand, said in a statement on its company website that it has acted lawfully in accordance with fair competition rules and practices, and will be pursuing all legal steps in order to defend itself. The other companies named in the decision has yet to reply to Bloomberg regarding the Cade's verdict.
The world's largest cement maker after Holcim, Lafarge SA, reportedly was not included in the group as the Paris-based firm had already reached an agreement with the Brazilian regulator in 2007. Lafarge had paid 43 million reais in fines and agreeing to cease any anti-competition practice as demanded in its accord with Cade, Bloomberg said.
