Wallenius Wilhelmsen Logistics (WWL) received the
final cease and desist order and final surcharge
order from the Japanese Fair Trade Commission (JFTC).
WWL is owned 50% by Wilh. Wilhelmsen ASA (WWASA),
which is owned 72.7% by Wilh. Wilhelmsen Holding ASA
The JFTC states that WWL and other companies in the
industry, in the years 2008 - 2012, restrained
competition through jointly agreeing on raising or
maintaining rates, thereby breaching the Antimonopoly
Act. Todays' final order confirms the draft decision
received in January 2014.
For WWL, the surcharge is set to JPY 3 495 710 000
(approximately USD 34 million) and primarily related
to shipments of new cars from Japan to Europe. WWASA
made an accrual of USD 16.5 million in the fourth
quarter of 2013. The final order will therefore not
have any effect on the accounts for the first quarter
of 2014.
Cost of process management related to these
investigations is charged on an ongoing basis. For
2013, the fees to lawyers and other process related
expenses were estimated to USD 8-9 million (WWASA
share). Except the accrual of USD 16.5 million, no
other accruals or reserves have been charged to the
accounts.
EUKOR Car Carriers, owned 40% by WWASA, was initially
included in the investigation, but has been dropped
by the JFTC.
WWASA has not received any further information
through WWL and EUKOR on ongoing investigations in
other jurisdictions, but the joint ventures will
continue to cooperate with relevant authorities as
applicable.