EU Fines Animal Feed Phosphate Cos EUR176 Million For Running Cartel

The European Commission Tuesday fined six chemical companies a total of EUR176 million for operating a cartel of phosphates used in animal feed for over three decades.

Belgian chemical company Tessenderlo Chemie NV will pay EUR84 million, the biggest share of the fine. French company Timab Industries will pay EUR60 million, and FMC Corp. (FMC) along with several of its subsidiaries will pay EUR14.4 million.

Five of the companies settled with the commission and thus had their fines reduced by 10%. The commission also reduced Tessenderlo's fine 50% because it cooperated with the investigation.

"While companies that cooperate with the commission, including under the settlement procedure, can count on immunity or a reduction of the fine, there should be no doubt about our determination to unearth and punish cartel members," said Joaquin Almunia, the EU's antitrust chief.

The commission, the European Union's executive arm, said the cartel was operating from March 1969 until February 2004, though not all companies were involved for the entire time.

-By Matthew Dalton, Dow Jones Newswires; [phone]; [e-mail]