Chemtura fined Euros 13.6 million in rubber chemicals investigation

By Liz White, ERJ staff

Middlebury, Connecticut-Chemtura Corp. has been fined Euros 13.6 million by the European Commission as a result of an EC investigation into price fixing in the rubber chemicals sector.

Chemtura said its continued cooperation with the EC throughout the investigation, which covered practices prior to October 2002, resulted in maximum leniency-a 50-percent reduction in its fine.

The company believes that this marks the end of coordinated investigations by the US, Canada and the EU that were first publicly announced in autumn 2002.

"We are pleased to see this lengthy and expensive legacy ordeal resolved," said Robert Wood, Chemtura chairman, president and ceo, in a company statement.

Separately, Chemtura announced that it has settled antitrust claims from direct purchasers of rubber chemicals-with claimants representing over half of the company's relevant US rubber chemicals sales-and has also settled other antitrust-related civil matters for a combined total of about $50 million.

The chemicals group said that it will take a fourth quarter charge of about $16 million for the EC fine and of $11 million to increase its previously established reserves for antitrust matters.

"The decisions announced today reflect the very significant progress we are making in bringing these legal issues to closure so that we can give our undivided attention to value-creating commercial priorities that are in the best interests of our shareholders," Wood concluded.

Bayer AG has also been investigated as part of the same case and its penalty was expected to be anounced at the same time as Chemtura's: so far no announcements from the German group or the EU have been made public.