Goldman Sachs, Prysmian, others lose challenge against EU cartel fine (updated)

Sumitomo Electric Industries

12/07/2018 15:07

(Adds Prysmian comment)
    By Foo Yun Chee
    LUXEMBOURG, July 12 (Reuters) - Investment bank Goldman
Sachs  GS.N , the world's biggest cablemaker Prysmian  PRY.MI ,
Nexans  NEXS.PA  and eight other cable companies on Thursday
lost their challenge against a 302 million euros ($353 million)
EU cartel fine.
    The companies had appealed to the General Court, Europe's
second-highest court, asking for the European Commission's 2014
decision to be thrown out and their fines reduced.
    The EU antitrust enforcer said the group ran a power cable
cartel for almost 10 years from 1999, sharing markets and
allocating customers between themselves. ABB  ABBN.S  escaped a
33 million euro sanction by alerting the authorities.
    The court rejected the appeals.
    "The General Court confirms the fines of over 300 million
euros that the Commission imposed on the main European and Asian
producers of (extra) high voltage power cables for their
participation in a worldwide cartel," judges said.
    Prysmian was hit with the biggest fine at 104.6 million
euros, which included a joint fine of 37.3 million euros with
Goldman Sachs. The bank acquired the Italian company via one of
its private equity funds in 2005 but has since sold its holding.
    The group said in a statement it would appeal the general
court's decision at the EU's highest court, the European Court
of Justice.
    Other cartel members were Japanese cable firms Exsym
Corporation, J-Power Systems Corporation and Viscas Corporation,
Korean peer LS Cable & System and General Cable Corp via its
subsidiary Silec.
    Fines were also given to Danish company NKT Holding
 NKT.CO , South Korean firm Taihan Electric Wire  001440.KS ,
Mitsubishi Cable Industries  MTCBL.UL , Sumitomo Electric
Industries  5802.T  and Hitachi Metals Ltd  5486.T . Sumitomo
and Hitachi were J-Power Systems' previous owners.
    Antitrust enforcers in Japan, South Korea and Australia have
already levied million-dollar fines against cable companies for
anti-competitive practices.
    ($1 = 0.8565 euros)

 (Reporting by Foo Yun Chee and Robert-Jan Bartunek; additional
reporting by Agnieszka Flak; Editing by David Evans and Mark
Potter)
 ((foo.yunchee@thomsonreuters.com)(+32 2 287 6844)(Reuters
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