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Share Price: 468.15
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UPDATE 3-EU drops Shell, BP, Statoil from ethanol benchmark investigation

Mon, 07th Dec 2015 17:58

(Adds sources, Commission, company comments)

By Philip Blenkinsop and Foo Yun Chee

BRUSSELS, Dec 7 (Reuters) - EU antitrust regulators havedropped Shell, BP, and Statoil from aninvestigation into suspected rigging of ethanol benchmarks,focusing instead on three producers of the biofuel.

The European Commission said on Monday it had opened aformal antitrust investigation into the actions of Spanishcompany Abengoa SA, Belgium's Alcogroup SA andLantmännen ek för of Sweden.

In April, EU antitrust regulators raided several bioenthanolcompanies and at the same time stepped up a two-yearinvestigation into biofuel price benchmarks. In 2013, itsearched the offices of BP, Shell and Statoil too.

BP, Shell, Statoil and price reporting agency Platts havebeen told they are not part of the investigation opened onMonday, two sources familiar with the matter said.

"The Commission's investigation focuses on behaviours inprice benchmarks for the ethanol sector," the EU competitionauthority said in response to an email asking if crude oil andrefined products were still being assessed.

"The Commission is currently not investigating furtherbehaviours in price benchmarks for the crude oil sector."

BP was not immediately available for comment, Shell declinedto comment, and a spokeswoman for Norwegian state producerStatoil said there were no formal charges or accusations againstthe company.

The Commission said it was concerned that Abengoa, Alcogroup and Lantmännen ek för may have colluded to manipulate ethanolbenchmarks published by Platts.

It said this could include agreeing to submit or supportbids to hike the benchmark and so drive up ethanol prices,leading to less use of biofuels as an alternative to fossilfuels, with negative consequences for consumers and theenvironment.

Platts said it had not been charged with any wrongdoing andwas not an addressee of the European Commission's statement ofobjections in relation to the bioethanol pricing investigation.

Alcogroup said: "Alcodis and Alcogroup operate theiractivities in accordance with European law and therefore fullycooperate with the European Commission whilst ensuring theirfundamental rights to be respected."

Lantmännen said it "cooperates fully with the authority".Abengoa was not immediately available for comment.

In a separate case, the Commission is also investigatingseveral bioethanol producers on suspicion of taking part in acartel following searches of offices. The sources said the oilmajors are not involved in this case either.

Ethanol is made from biomass such as wheat, maize or sugarbeet that is mainly added to gasoline and used as a biofuel forcertain motor vehicles. (Reporting by Philip Blenkinsop; Addtional reporting by DmitryZhdannikov in London and Gwladys Fouche in Oslo; Editing bySusan Thomas)

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