In the cartel proceedings against German cement companies the Federal Court finally confirmed the merits of the Higher Appeal Court’s verdict of June 2009, which decided about the appeal of HeidelbergCement against an administrative fine order from 2003. The fine order relates to cartel infringements during the years 1990 until 2002. Due to overlong duration of the proceedings, the Court reduced the fine against HeidelbergCement by €8.5 million, i.e. 5% of €169.9 million, to €161.4 million. The proceedings reduced the fine by more than €88.5 million against the fine originally imposed.
Following the release of the respective financial provisions a P&L effective charge of almost €30 million remains in the second quarter 2013. The timing for the cash payment of €161.4 million is not known, yet. Earnings outlook and financial planning remain unchanged.
To avoid such cases and other violations of the laws in the future as far as possible, HeidelbergCement has implemented a far-reaching compliance programme that comprises not only a clear compliance policy but also intense training using state-of-the art means of communication. Any non-compliance with the policy will be strictly investigated and sanctioned.
Adapted from press release by Louise Fordham.
Read the article online at: https://www.worldcement.com/europe-cis/09042013/heidelbergcement_german_cartel_fine_confirmed_945/