Nordic Waterproofing provides an update of the competition case
On 31 May 2017, as communicated by Nordic Waterproofing by an announcement on the same day, the Danish Competition and Consumer Authority (the “DCCA”) issued a decision (“the Decision”) to providers of waterproofing products in Denmark, including Nordic Waterproofing A/S, a Danish subsidiary of Nordic Waterproofing Holding A/S (STO:NWG.ST). The Decision relates to the application of the standard setting organization TOR’s product standards for waterproofing products and orders TOR to repeal its product standards and Nordic Waterproofing to seize its participation in TOR.
Also as previously communicated, Nordic Waterproofing A/S is likely to receive so-called follow-on claims or civil actions for damages as a result of the DCCA’s Decision and such claims have now been received, holding all addressees of the Decision jointly and severally liable, totaling approximately DKK 145 million. Of the alleged claims, approximately DKK 80 million concern hypothetical future losses for the period 2017–2027. Since Nordic Waterproofing does not agree with the DCCA’s Decision, and does not find the claims to be substantiated and legitimate, no provisions have been made.
Nordic Waterproofing A/S maintains that it has acted in compliance with applicable laws and business practices and accordingly disagrees with the content of the Decision. Nordic Waterproofing A/S therefore intends (i) to appeal the Decision before the Competition Appeals Board and, if necessary, before the ordinary courts, and (ii) to reject the claims for damages. A final decision in these proceedings will likely be 3–4 years underway.
The DCCA has stated its intention to hand over the case to the Danish Prosecutor for Serious Economic and International Crime (“SØIK”) in order to pursue a fine to be imposed on addressees of the Decision. However, the DCCA has also stated that it intends to await the outcome of the appeal of the Decision before the Competition Appeals Board. The claimed violation outlined in the Decision would according to a legal assessment probably constitute a “serious violation”. As previously communicated, the basic amount for such a violation is expected to range from DKK 4 to 20 million. Any fine must be imposed in court and will be subject to appeal in the second instance.
Once the civil actions for damages have been formally filed before the Danish courts, Nordic Waterproofing A/S will repeat its rejection of the claim. Judgement in the matter is likely to be several years underway and proceedings may possibly be stayed until the judicial review of the DCCA’s Decision has been completed by a final judgement. Judgement in the civil actions will be subject to appeal before the High Court.
This information is such that Nordic Waterproofing Holding A/S is obliged to make it public pursuant to the EU Market Abuse Regulation. The information submitted for publication, through the contact person set out below, on 3 June 2017, at 5:30 p.m. CET.
For further information, please contact:
Anders Antonsson, investor relations
Telephone: 46 709 99 49 70
Nordic Waterproofing is one of the leading providers in the waterproofing market in northern Europe. The Company provides high-quality products and solutions for waterproofing in Sweden, Finland, Denmark, Norway, Belgium, the Netherlands, Poland, the United Kingdom and Germany. Nordic Waterproofing also provides installation services through wholly-owned subsidiaries in Finland, and through part-owned franchise companies in Denmark. The Company markets its products and solutions under nine brands, all with an extensive heritage, most of which are among the most established and well-recognized brands in waterproofing in their respective markets, such as Mataki, Trebolit, Phønix Tag Materialer, Kerabit, Nortett and SealEco. Nordic Waterproofing is listed in the Mid Cap segment on Nasdaq Stockholm with the stock ticker NWG.