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Weko has launched a cartel investigation against the four biggest international players in the fragrance industry. Two Geneva-based groups, Givaudan and Firmenich, were also affected.
Weko said on Wednesday that there is a suspicion that companies are coordinating their pricing policies. They may have prevented their competitors from supplying certain customers, restricting the production of certain fragrances.
Weko is working with EU, UK and US competition officials to clarify the allegations. In addition to Givaudan and Firmenich, two other global fragrance giants, International Flavors & Fragrances from the USA and Symrise of Germany were also involved in the lawsuit.
House searches have already been carried out in several places. However, according to Weko, the presumption of innocence applies to all suspects.
The investigation could take years.
In its analysis of the claims, ZKB mentions a setback for the entire fragrance industry, as well as the Swiss-listed Givaudan. However, according to the responsible ZKB expert, from today’s perspective it is difficult to assess what the outcome of the investigation will be and what the possible financial consequences, such as fines, will be. He assumes investigations could take longer, possibly years.
Meanwhile, Bank Vontobel assumes officials have good reasons for misconduct. According to the responsible Vontobel expert, if these suspicions are proven to be true, it would mean significantly damaging the image of the industry and Givaudan, apart from possible fines (10% maximum of global sales in the EU) and a weaker position in the future. price negotiations.
Givaudan (today) will also be penalized on the stock market on Wednesday. At 13:15, the shares fell 2.7 percent to 2,725 francs.
Unannounced house calls
Unlisted Firmenich is about to merge with Dutch chemical group DSM. According to a comment from US asset manager Bernstein, the merger should not be in jeopardy due to the Weko investigations. Firmenich hopes to complete this in the first half of 2023 and has recently seen itself on the right track.
Firmenich confirmed in a press release Wednesday (today) that unannounced house searches have already been made as part of antitrust investigations. However, this does not mean that the company engages in anti-competitive behavior. Firmenich also said he would not predict the results of the investigation.
Givaudan, meanwhile, confirmed to the Reuters news agency on Tuesday evening that it was part of the investigation. A spokesperson for the group said one was fully working with authorities. Responses to the AWP news agency’s questions about the investigations are awaited. (SDA)
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
