8-K

CRH PUBLIC LTD CO 8-K Report (Dec 10, 2009)

Filed December 10, 2009For Securities:CRH

Summary

This 8-K filing from CRH Public Ltd Co., dated December 10, 2009, reports on a significant development concerning its Polish subsidiary, Grupa Ożarów S.A. The Polish Office for Competition and Consumer Protection (OCCP) has concluded that Grupa Ożarów, along with six other cement industry companies in Poland, engaged in anti-competitive practices. Consequently, the OCCP has levied fines, with CRH's subsidiary facing a penalty of PLN 104.97 million (approximately €25.6 million). CRH expresses serious concern regarding these findings and asserts that it always understood Grupa Ożarów to operate independently. The company, based on preliminary reviews and expert advice, believes there are substantial grounds to appeal the OCCP's decision. CRH emphasizes its commitment to its Code of Business Conduct, which strictly prohibits anti-competitive behavior. The company will decide on lodging an appeal by December 23, 2009.

Key Highlights

  • 1CRH subsidiary Grupa Ożarów S.A. implicated in anti-competitive practices by Polish authorities.
  • 2The Polish Office for Competition and Consumer Protection (OCCP) has imposed fines on seven cement companies, including Grupa Ożarów.
  • 3Grupa Ożarów has been fined PLN 104.97 million, equivalent to approximately €25.6 million.
  • 4CRH states it has grounds for appeal based on preliminary reviews and expert analysis.
  • 5The company's Code of Business Conduct explicitly prohibits anti-competitive behavior.
  • 6A decision on whether to appeal the OCCP findings must be made by December 23, 2009.

Frequently Asked Questions

The main issue is that CRH's Polish subsidiary, Grupa Ożarów S.A., along with six other companies in the Polish cement industry, has been found by the Polish Office for Competition and Consumer Protection (OCCP) to have engaged in anti-competitive practices, resulting in significant fines.

The fine levied against Grupa Ożarów S.A. amounts to PLN 104.97 million, which is approximately €25.6 million. While this is a significant sum, CRH is considering an appeal, so the final financial impact may be subject to change.

CRH has expressed serious concern and, based on preliminary reviews and advice from economic experts, believes there are significant grounds for an appeal. The company has until December 23, 2009, to decide whether to lodge an appeal with the Polish courts.

CRH states that its Code of Business Conduct sets clear standards and expressly prohibits any anti-competitive behavior. The company also stated that it always understood Grupa Ożarów to conduct an independent commercial policy.