OFT Decision

RNS Number : 4746Z

Kier Group PLC

22 September 2009

 



OFT Investigation

The Office of Fair Trading (OFT) has today released the details of fines it has imposed on 103 companies as a result of its investigation into cover-pricing in the construction industry. This investigation has been ongoing for several years. Kier Group plc informed the market of this investigation on 25 May 2007 shortly after it first became aware that the group was the subject of this investigation. Kier has co-operated with the OFT's process.

Kier Regional Limited has now been found by the OFT to have breached the Competition Act 1998 in respect of three tenders between 2001 and 2005. As a result, the OFT has fined Kier £17.9m (calculated by reference to its worldwide group turnover). At no point has the OFT alleged or found that Kier paid or received any compensation payments.

Kier is totally committed to ensuring that the practice of cover pricing and anti-competitive behaviour more generally is totally driven out of the construction industry and we have been leading the drive by the UK Contractors Group (UKCG) to ensure that a new industry wide code of conduct governing competitive behaviour is implemented.

Kier has strengthened its processes and procedures through a comprehensive programme of internal and external audit and training, so as to ensure that anti-competitive practices do not occur anywhere in the Group.

Kier is assessing the OFT's decision and is considering its position.

ENDS

Enquiries:

Deena Mattar

Finance Director, Kier Group plc

01767 640 111

Faeth Birch / Conor McClafferty

Finsbury

020 7251 3801

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