NETHERLANDS - NSG Subsidiary Fined by NMa for Alleged Competition Rules Violations
January 7, 2011
Nippon Sheet Glass Co. Ltd. ( NSG ) confirms that, as announced by the Netherlands Competition Authority (Nederlandse Mededingingsautoriteit - NMa) on January 6, 2011, its subsidiary in the Netherlands, Pilkington Benelux B.V., received a decision from the NMa imposing a civil fine on Pilkington Benelux B.V. amounting to Euro 7.46 million (approximately $9.7 million). According to an NSG announcement, the fine relates to alleged violations of Netherlands competition rules within the years 2004/2005 by a number of glass manufacturers in the building glass sector, including Pilkington Benelux B.V.
NSG says it will examine the decision and decide on future action, including a possible appeal.
As detailed in NSG’s annual report and accounts for the year ending March 31, 2010, the announcement notes that the company has previously made a provision of Euro 5 million (approximately $6.5 million) against the estimated fine payment, and will therefore record an additional charge of Euro 2.46 million (approximately $3.2 million) in the group’s third quarter results, scheduled to be announced February 3, 2011. NSG says it does not expect to make a revision of its operating result outlook as a result of this development.