8-K

CRH PUBLIC LTD CO 8-K Report (Jun 3, 2014)

Filed June 3, 2014For Securities:CRH

Summary

CRH Public Limited Company (CRH) has filed an 8-K report detailing an investigation by the Swiss Competition Commission. The Commission's secretariat has proposed imposing sanctions and fines on various Swiss wholesalers, including CRH's subsidiaries BR Bauhandel AG, Gétaz-Miauton SA, and Regusci Reco SA, for alleged competition law infringements within the sanitary industry. The total proposed fine amounts to approximately CHF 283 million, with CRH's Swiss subsidiaries attributed a significant portion of approximately CHF 119 million (€98 million), based on Swiss turnover. CRH strongly disagrees with the secretariat's position and considers the proposed fine to be unjustified. The company plans to formally contest these allegations and present its case to the secretariat. While a decision is anticipated by the end of 2014 or early 2015, CRH notes that any decision can be appealed through Switzerland's judicial system, including the Federal Administrative Tribunal and the Federal Supreme Court. Investors should monitor this situation as potential fines could impact CRH's financial performance.

Key Highlights

  • 1CRH's Swiss subsidiaries are involved in an investigation by the Swiss Competition Commission regarding the sanitary industry.
  • 2The Commission's secretariat has proposed sanctions and a total fine of approximately CHF 283 million on all parties involved.
  • 3CRH's Swiss subsidiaries are attributed approximately CHF 119 million (€98 million) of the proposed fine.
  • 4CRH believes the allegations are unfounded and the proposed fine is unjustified.
  • 5The company intends to formally respond and contest the allegations.
  • 6A decision from the Competition Commission is expected by the end of 2014 or early 2015.
  • 7CRH has the right to appeal any decision through Swiss federal courts.

Frequently Asked Questions

The investigation concerns alleged competition law infringements within the sanitary (bathroom fixtures and fittings) industry in Switzerland. The Commission's secretariat has proposed imposing sanctions on CRH's Swiss subsidiaries and other major wholesalers.

The total proposed fine for all parties is approximately CHF 283 million. CRH's Swiss subsidiaries are attributed approximately CHF 119 million (€98 million) of this amount, based on their Swiss turnover. CRH considers this proposed fine unjustified.

CRH strongly believes that the secretariat's position is fundamentally ill-founded and the proposed fine is unjustified. The company intends to respond to the secretariat to contest these allegations.

CRH will submit its comments to the secretariat. The Competition Commission is expected to communicate its decision by the end of 2014 or early 2015. CRH also has the option to appeal any adverse decision through the Federal Administrative Tribunal and potentially the Federal Supreme Court.