Arkema, ICI, Lucite and Quinn Barlo face a combined E344.5m fine

Arkema and ICI have received hefty fines from the European Commission for their part in a price fixing cartel in the acrylic glass market, which also involved Degussa, Lucite and Quinn Barlo. The Commission fined Arkema E219m, ICI E91.4m, Lucite E25m and Quinn Barlo E9m for participating in price fixing between 1997 and 2002. Degussa received no fine because it was the first to reveal details about the cartel to the Commission.

The E344.5m total is the fourth largest fine the Commission has levied for a price fixing cartel. Its size partly reflects the fact that ICI (which owned the acrylics business that is now Lucite until 1999) and Arkema (which was spun out of the Total group earlier this year) are repeat offenders. Competition commissioner Neelie Kroes said “I am shocked that companies like ICI and Arkema have been fined once again. These fines will serve as a cold shower for the management and shareholders of all these companies, who have to realise that cartels cannot and will not be tolerated.”

Arkema said the acrylic fine and another relating to the hydrogen peroxide market “will have no impact on Arkema’s results, taking into account both provisions already booked and the warranty agreed with Total”. ICI said it co-operated fully with the Commission throughout the investigation. It will make a provision for the fine in its second quarter results.