By Rogerio Jelmayer
SAO PAULO--Brazil's antitrust regulator is likely to impose
fines totaling 3.1 billion Brazilian reais ($1.3 billion) on six
cement producers that allegedly were part of a cartel in the Latin
American country.
Late Wednesday, four of five members of the board of Brazil's
Administrative Council for Economic Defense, or Cade, voted for the
penalties, while the remaining member requested a review of the
process. Under the regulator's rules, during the review period Cade
members can change their votes. Cade didn't offer a timetable for a
final decision.
According to the current proposal, Brazil's Votorantim Cimentos
would be fined BRL1.56 billion and Switzerland's Holcim Ltd.
(HOLN.VX) would receive a penalty of BRL508.5 million. Also,
Itabira Agro Industrial would be fined BRL411.6 million, Cimpor
Cimentos do Brasil would receive a penalty of BRL297.8 million and
InterCement do Brasil, a subsidiary of Camargo Correa group, would
be fined BRL241.7 million. In addition, Itambe would receive a fine
of BRL88 million.
Cade said the alleged cement cartel--which existed from 1986 to
2007, according to the regulator's investigation--led to increased
prices passed on to consumers.
Representatives for companies involved in the investigation
couldn't be immediately reached for comment.
Write to Rogerio Jelmayer at rogerio.jelmayer@wsj.com
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