Further detail on Kier's fine
Further detail on Kier's fine from the OFT
On Tuesday 22 September 2009 the OFT released the details of its decision arising from its investigation into cover-pricing in the construction industry together with the fines it has imposed on 103 companies totalling £129.5m. Further to the statement released by Kier on that date and following further review of the OFT's decision we wish to provide the following detail on the fine imposed.
The fine for Kier is £17.9m which is the largest of any imposed on the 103 companies. The fine is calculated by reference to Kier Group plc's entire worldwide group turnover (not just that for Kier Regional Limited) for the year to 30 June 2008 (£2.3bn). In the case of certain companies with group turnover in excess of Kier but where the fine is lower, the applicable turnover was calculated by reference to the ownership structure in place at the time the infringement occurred, not the acquiring group.
Kier's fine was not reduced for leniency as the OFT closed the window for leniency prior to Kier becoming aware of its involvement in the OFT's investigation.
Kier has co-operated with the OFT throughout our entire involvement in the process.
The level of the fine we have received compared with others does not indicate a more serious breach of the Competition Act 1998. The breach for Kier related specifically to cover-pricing which is at the lower end of the spectrum of the suggested anti-competitive activity. The OFT states that six companies were found to have made compensation payments to other parties; Kier was not one of these. However we note that the fines for those six companies are lower than that for Kier.
Kier is very disappointed at the level of the fine imposed by the OFT. It is the largest fine of any of those investigated notwithstanding that Kier's infringements were at the lower level of the offences committed and that we co-operated openly with the OFT throughout the entire investigation. Kier secured none of the three contracts in respect of which it has been fined by the OFT.
Kier is continuing to assess the OFT's decision and is considering its position.
Contacts:
Deena Mattar
Group Finance Director
Kier Group 01767 640111
Faeth Birch
Conor McClafferty
Finsbury 020 7251 3801
This information is provided by RNS
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