Smurfit Kappa Group confirmed yesterday (Tuesday, 6 August) that the Italian Competition Authority (ICA) has levied a fine of €124 million on the group.
The Irish packaging giant said, however, that it is ‘very disappointed’ with the decision, on many levels, and added that it will ‘vigorously appeal’ the decision on both administrative and substantive grounds.
The group noted that the process will more than likely take a number of years.
SKG, who claimed to have fully co-operated with the investigation, intends to take the charge as an exceptional charge in the current year.
The charge is the result of a probe launched in 2017, following complaints that firms engaged in anti-competitive practices in Italy.
According to the ICA, the investigation concerned two separate agreements which it said were aimed at ‘distorting the competitive dynamics in the corrugated sheet market and in the carton packaging market’.
The news comes approximately one week after Smurfit Kappa released its Half Year results.
The group reported a revenue increase of 4% in the first half of the year, citing strong M&A activity in Serbia, Bulgaria, and other European cities.
© 2019 Checkout – your source for the latest Irish retail news. Article by Aidan O’Sullivan. Click sign-up to subscribe to Checkout.