Cargill and Bunge caught up in anti-cartel raids across the EU
(The Public Ledger) -- CARGILL and Bunge were raided by the European Commission (EC) on Thursday in a sweep of traders and distributors of cereals and other agricultural products for human consumption and animal feed in two EU countries.
"The commission has reason to believe that the companies concerned may have violated (EU) ... rules on cartels and restrictive business practices," it said. The raids were conducted in co-operation with national competition agencies.
Although the EC did not identify the countries, traders or companies involved, it later emerged Cargill and Bunge's offices in Italy were raised. Both US-based firms said they were co-operating with EU officials. Archer Daniels Midland said its offices were not involved in the raids.
The EC, the European Union's executive arm, said its raids were part of an investigation and no judgement had been made on whether the companies were guilty of fixing prices. "Surprise inspections are a preliminary step in investigations into suspected cartels," the statement said. "The fact that the EC carries out such inspections does not mean that the companies are guilty of anti-competitive behaviour; nor does it prejudge the outcome of the investigation itself."
The raids come at a time when grain prices have soared to record highs amid strong demand, production problems and the use of grain to produce biofuels that have lifted food prices.
Companies judged to have participated in a cartel can face substantial fines by the EU executive of up to 10% of annual turnover. For large corporations, fines have never come close to that cap. There is no time limit for the EC to investigate.
"The commission has reason to believe that the companies concerned may have violated (EU) ... rules on cartels and restrictive business practices," it said. The raids were conducted in co-operation with national competition agencies.
Although the EC did not identify the countries, traders or companies involved, it later emerged Cargill and Bunge's offices in Italy were raised. Both US-based firms said they were co-operating with EU officials. Archer Daniels Midland said its offices were not involved in the raids.
The EC, the European Union's executive arm, said its raids were part of an investigation and no judgement had been made on whether the companies were guilty of fixing prices. "Surprise inspections are a preliminary step in investigations into suspected cartels," the statement said. "The fact that the EC carries out such inspections does not mean that the companies are guilty of anti-competitive behaviour; nor does it prejudge the outcome of the investigation itself."
The raids come at a time when grain prices have soared to record highs amid strong demand, production problems and the use of grain to produce biofuels that have lifted food prices.
Companies judged to have participated in a cartel can face substantial fines by the EU executive of up to 10% of annual turnover. For large corporations, fines have never come close to that cap. There is no time limit for the EC to investigate.