NCC risks damages for competition infringement in Norway

The Norwegian Competition Authority has issued a preliminary ruling to the effect that NCC will have to pay competition infringement damages corresponding to approximately SEK 200 million. The alleged infringements pertain to asphalt paving work in two areas. NCC considers that the amount of damages is excessive, but admits to a number of circumstances.

The two areas that have been part of the Competition Authority’s investigation are Trondheim and the Møre and Romsdal district.

NCC completely refutes the Competition Authority’s claims concerning illicit collusion in the Møre and Romsdal district. An investigation conducted by the law firm Advokatfirma Raeder DA on behalf of NCC has revealed no evidence of such collusion.

In the Trondheim area, the Competition Authority found evidence of illicit collusion between NCC Roads and Veidekke during the years 2005 to 2008. Advokatfirma Raeder DA’s investigation also confirmed that irregularities had occurred in this area. They were committed by a single former employee who had premeditatedly acted in contravention of NCC’s values and rules.

NCC has clear-cut values and rules concerning how the company should conduct itself in the market and strongly disassociates itself from all forms of illicit collusion. Since 2002, managers and specialists at NCC have undergone training in business ethics and competition law. Slightly more than 3,000 employees have received such training, which is mandatory.

“It is regrettable that a former employee has premeditatedly acted completely in contravention of the company’s values and rules. Such actions risk seriously damaging the company and the entire industry,” says Göran Landgren, Business Area President of NCC Roads.

NCC will now evaluate the ruling made by the Competition Authority and has six weeks to refute it. Subsequently, the authority will arrive at its definitive ruling on the matter, which can then be heard in a court of law.

NCC is reviewing the financial consequences of the preliminary ruling.

For further information, please contact:
Göran Landgren, Business Area President NCC Roads, + 46 (0) 70-595 0730
Magnus Jonsson, External Communication and Media Relations Manager NCC AB, +46 (0)8-585 522 46

NCC’s media line: +46 (0)8-585 519 00, E-mail: press@ncc.se

This is the type of information that NCC could be obligated to disclose pursuant to the Securities Market Act. The information was issued for publication on October 17, 2011, at 12:35 p.m.

All NCC’s press releases are available at www.ncc.se/press

NCC is one of the leading construction and property development companies in the Nordic region. In 2010, NCC had sales of SEK 49 billion, with 17,000 employees. NCC Roads’ core business is production of aggregates and asphalt, asphalt paving operations and road services.