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Wilh. Wilhelmsen ASA: Two joint ventures fined by China's National Development and Reform Commission

Financial News

Wilh. Wilhelmsen ASA: Two joint ventures fined by China's National Development and Reform Commission

Wilh. Wilhelmsen ASA: Two joint ventures fined by China's National Development and Reform Commission

China's National Development and Reform Commission (NDRC) has concluded their investigation into the car carrying industry and ocean transport to and from China. EUKOR Car Carriers (owned 40% by WWASA) and Wallenius Wilhelmsen Logistics (WWL, owned 50% by WWASA) have been two of several shipping companies included in the investigation.

The NDRC's investigation concluded that EUKOR and WWL engaged in agreements prohibited by the Chinese anti- monopoly law causing restriction on competition in the Chinese market.

As part of the investigation, EUKOR and WWL have received RMB 284.7 million (approx. USD 44 million) and RMB 45.1 million (approx. USD 7 million) respectively in fines from NDRC. WWASA made a provision for the outcome of the investigation in the third quarter 2015, so the fines will not have an accounting effect in the fourth quarter 2015.

The fine is calculated as a percentage of the respective company's share of import and export volumes to/from China.

Source: NewsWeb