Norwegian Competition Authority Gives Notice of Decision in Asphalt Case
The Competition Authority has notified Veidekke that the Authority is considering a decision directed at the Company for breach of competition laws. It is stated in the notice that the investigation has revealed incidents associated with two individuals' actions, and that it does not give grounds to assert that these irregularities are evidence of a widespread wanton culture in Veidekke, as portrayed in the media. Veidekke itself immediately notified the Authority of the matter in January 2010, and the company has cooperated fully with the Competition Authority during its investigation. The Competition Authority has therefore declared that the legal conditions for full leniency have been met, and that Veidekke will avoid fines.
The Competition Authority gave notice today of its decision on the investigation, which has been ongoing since January 2010. The Competition Authority's decision concerns a breach of competition law in Kolo Veidekke's operations in Central Norway in 2005-2008 and a single violation in Møre and Romsdal in 2006.
Veidekke contacted the Competition Authority as soon as the Company's management was made aware of allegations in January 2010 that some persons in the company could have been involved in price collusion. Veidekke then cooperated with the Competition Authority to provide all relevant information and documentation. The Competition Authority has stated that Veidekke will be exempted from a fine of 270 MNOK, provided that Veidekke continues to cooperate fully with the Competition Authority and that no information becomes available indicating that Veidekke has given the Authority misleading or incorrect information.
"We consider breaches of competition law in our organisation as very serious. At the same time, we are pleased that the Competition Authority's decision shows that the breaches are not the result of a wanton company culture. With the exception of one incident, a single person is responsible for the breaches. We are disappointed that this could happen despite our substantial investment of resources over years in extensive ethics training and proper business conduct. We are pleased that the Competition Authority confirms in its decision that we have met cooperative requirements, and we appreciate the professional and constructive cooperation we have had with the Authority since notifying them of the allegations", says CEO Terje R. Venold of Veidekke ASA.
"For me, it is also reassuring that our internal investigation, which took place in cooperation with the Competition Authority, reached the same conclusion as the Authority", adds Venold.
Veidekke will continue to cooperate fully with the Authority until the Authority has concluded its handling of the case. The notice will be reviewed to determine whether there are conditions that should be investigated more closely or commented on before the Competition Authority adopts its final decision. Veidekke maintains its request that anyone who may have information pertaining to the case should provide it to the Competition Authority.
Veidekke will convene a press briefing on the case at 14.00 and will not respond to inquiries related to the case before this.
Contact person:
Audun Blegen, Director of Commercial Policy and Public Affairs, Veidekke ASA, phone +47 21 05 74 72, mobile +47 959 79 664,
audun.blegen@veidekke.no
Veidekke is one of Scandinavia's largest contractors with 6,100 employees and a turnover of NOK 16.3 billion (2010). Activities include building and construction projects, residential developments, asphalt plants, gravel and aggregates and road maintenance. Our values are professional, honest, enthusiastic and pioneering. Our goals for health, safety and the environment, HSE, have equal status with our financial goals. Veidekke is characterized by a decentralized organizational model with a strong corporate culture and a high degree of employee involvement. Over half the employees are co-owners, holding almost 20% of Veidekke's shares between them. The company is listed on the Oslo Stock Exchange and has never declared a loss since it was founded in 1936.