EU Says Construction Companies, Trade Bodies Likely Formed Pricing Cartel

Dow Jones07-20
 
 

The European Commission said it provisionally found that ten construction chemical groups and three trade bodies operated a cartel to raise prices following the Covid-19 pandemic and Russia's invasion of Ukraine.

Chemicals companies based across France, Germany and Spain, as well as trade bodies in each country, are suspected to have colluded to increase the price of chemicals used in cement, concrete and mortar, the commission said.

The charges follow a three-year investigation into alleged co-ordination of prices between 2021 and 2022, which would breach the bloc's competition rules, the commission said.

The companies being investigated include New York-listed Cemex and the Swiss-listed Sika, as well as Chryso, which is owned by Paris-listed Saint-Gobain. Mapei, Master Builders Solutions, MC Bauchemie, TAM Groupe, Ha-be, Germany's Liesen and Remei have also been placed under suspicion.

The trade associations named are France's SYNAD, the Deutsche Bauchemie and Spain's ANFAH.

Responding to a request for comment, Saint-Gobain referred to a 2023 statement in which the group said it cooperated with investigators. The group said it continued to "see no reason to expect any material financial impact for Saint-Gobain."

None of the other companies or trade associations immediately responded to a request for comment.

Europe's competition watchdog said it sent a 'Statement of Objections' to the companies outlining its preliminary findings, adding that this doesn't prejudge the outcome of an investigation. If the commission ultimately rules that they are guilty, the companies and trade associations could be fined up to 10% of their global annual turnover.

In response to higher raw material prices driven by the global pandemic and Russia's full-scale invasion of Ukraine in 2022, the companies are suspected to have colluded to justify price increases via press releases prepared within trade associations, the bloc's executive branch added.

Each company and trade body can request an oral hearing before representatives of the commission.

Sika shares fell 2.15% in early afternoon European trade, while Cemex rose 1.05% premarket. Saint-Gobain shares slipped 0.55%.

 

Write to Joe Stonor at josephmichael.stonor@wsj.com

 

(END) Dow Jones Newswires

July 20, 2026 08:23 ET (12:23 GMT)

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