January 11, 2010

 

EU phosphate antitrust case grips animal feed sector

 

 

Antitrust authorities in the EU have sent charges to producers of phosphates used in animal feed for operating a potential cartel.

 

Several European companies have been sent charge sheets as part of an investigation into a suspected animal-feed cartel, a spokesman for Europe's competition watchdog said on Friday (Jan 8).

 

European Commission antitrust spokesman Jonathan Todd confirmed the investigation but declined to name the companies under scrutiny or comment further.

 

The livestock industry feeds phosphate supplements to animals to bolster their growth and reproduction.

 

Belgian chemicals and plastics company Tessenderlo Chemie NV and Finnish chemicals maker Kemira said they had been contacted as part of the investigation.

 

Tessenderlo, a major producer of phosphates used in animal feed, said it was aware of the investigation but declined further comment.

 

Kemira said it had received a letter from the European Commission related to the suspected cartel, and had previously flagged the matter when its animal feeds business listed in 2004. The unit has since been sold to Norwegian chemical and fertiliser firm Yara International ASA.

 

Yara, which acquired Kemira's phosphates business in 2007, said it is cooperating with the commission's investigation and is now awaiting the conclusions.

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