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K+N distances itself from subsidiary's competition issues

Logistics group insists it has a comprehensive compliance programme, with alleged breaches by Alloin Group almost all prior to its acquisition by Kuehne + Nagel.

Logistics group Kuehne + Nagel has distanced itself from the price-fixing fines imposed by the France on its subsidiary Alloin Group and other express and parcels operators, insisting the company has a comprehensive compliance programme and that almost all of the alleged breaches by Alloin Group took place prior to its acquisition by Kuehne + Nagel.

As reported in Lloyd s Loading List.com[1], France s Competition Authority (FCA) yesterday announced fines totalling more than ‘ 672 million to 20 express and parcel delivery operators as well trade body Transport et Logistique de France (TLF) following an investigation into alleged price-fixing between 2004 and 2010. In its judgement, the regulator said there had been repeated consultation between competitors on annual rate increases , while smaller-scale collusive action, concerning 15 of the firms and the TLF, had focused on defining a common method of passing on a fuel surcharge . The biggest fine, totalling over ‘ 196 million, has been handed to Geodis. Among the other notable names to be sanctioned are French post office units Chronopost ( ‘ 99 million) and DPD France formerly Exapaq ( ‘ 44.9 million) DHL Express France ( ‘ 81 million), TNT Express ( ‘ 58.5 million), Dachser France ( ‘ 33.4 million), Gefco ( ‘ 30.6 million) Fedex Express France ( ‘ 17 million) and Norbert Dentressangle Distribution ( ‘ 9.7 million).

In return for its full co-operation , Kuehne+Nagel s French unit, Alloin, saw its fine reduced by 30% to ‘ 32 million. And Schenker France also picked up a ‘ 3 million fine despite parent company Deutsche Bahn being the whistleblower on the price-fixing practices. Geodis said it would appeal the fine. Commenting on the decision of the French Competition Authority, K+N said: Kuehne + Nagel was informed about today s decision of the French Competition Authority regarding the parcel delivery logistics market in France, which inter alia includes French Alloin Group, a company which was acquired by Kuehne + Nagel in 2009.

Regarding the fine of EUR 32 million for the Alloin Group, approximately EUR 31 million are attributable to the time before the acquisition of the Alloin Group by Kuehne + Nagel.

Kuehne + Nagel dissociates itself from such business practices, has a comprehensive compliance programme in place, which is continuously improving, and has been cooperating with the French Competition Authority since 2010. Kuehne + Nagel said it was reviewing all options, including an appeal against the decision as well as a recourse against the sellers .

Source: Lloyd s

References

  1. ^ As reported in Lloyd s Loading List.com (www.lloydsloadinglist.com)