Glanbia Share News (GLB)

The Office of Fair Trading (OFT) has issued a supplementary statement of objections in relation to its investigation into dairy prices.The supplementary statement provides additional support to the OFT's provisional finding that a number of parties colluded to increase the retail prices of various dairy products in 2002 and 2003, in breach of the Chapter I prohibition in the Competition Act 1998. Supermarket chains Tesco and Wm. Morrison are disputing the OFT's findings, whereas other parties named in the investigation have admitted their participation in some anti-competitive practices.Lucy Neville-Rolfe, Executive Director (Corporate and Legal) of Tesco said the company is continuing to co-operate with the OFT in the "next stage of this long running inquiry," but restated the company's position that it "did not collude with anyone"."We will, of course, look carefully at any new evidence the OFT sends to us relating to events that took place in 2002 and 2003. We will however continue to defend our position strongly," she added.One of the parties named in the announcement is The Cheese Company Limited, a UK hard cheese company now in the ownership of Milk Link Limited, which was owned by Glanbia during the period under investigation.Glanbia said it party to an agreement with TCC dated 7 December 2007 whereby both parties have agreed to co-operate with the OFT in its ongoing investigation. "As a result of agreeing to co-operate with the OFT it is currently anticipated that the maximum penalty payable by Glanbia and TCC combined is £2,016,360. It is expected that the actual fine imposed will be substantially lower," said Glanbia.