NIREUS S.A.
Announcement
The company informs the competent authorities and the investing public that the Competition Commission issued its decision no. 492/VI/2011 on the cooperation of the five fish farming companies, in which NIREUS participated, and for which it had been notified on 12 November 2008. Under this decision, a fine of 273,582 € was imposed on the company.
NIREUS notes that the decision of the Competition Commission recognized the special adverse situation under which the cooperation was formed and the overall management of this initiative, by the cooperating companies, in good faith and in full transparency to the competent state authorities and the Competition Commission.
It is reminded that during the last two quarters of 2008, the fish farming industry, that represents the second largest exporting sector of the country, was confronted with extremely adverse liquidity conditions, similar to other production and export industries worldwide, due to the global credit situation that coincided with the oversupply conditions of large quantities of sea bream over the same period, resulting in accelerated moves of stock liquidation with significant losses from many companies within the industry, at prices often lower that their total cost. The consequence of the above was the development of a vicious cycle of exhaustive and potentially unfair competition. In response to these unusual circumstances, the five major Greek export companies in the industry, including NIREUS, proceeded in November 2008 to short-term Memorandum of Cooperation of commercial nature and six-month duration. This action was directly and voluntarily communicated with the initiative of those companies to the Competition Commission, on a confidential basis and in accordance with current legislation, along with many other ongoing and public initiatives to relevant bodies for the purpose of temporary support to the industry. The validity of the above Memorandum of Cooperation was six months and has not been renewed since.
The company reserves the right to study in depth the issued decision and to proceed with the exercise of any legal right, if deemed necessary.
NIREUS notes that the decision of the Competition Commission recognized the special adverse situation under which the cooperation was formed and the overall management of this initiative, by the cooperating companies, in good faith and in full transparency to the competent state authorities and the Competition Commission.
It is reminded that during the last two quarters of 2008, the fish farming industry, that represents the second largest exporting sector of the country, was confronted with extremely adverse liquidity conditions, similar to other production and export industries worldwide, due to the global credit situation that coincided with the oversupply conditions of large quantities of sea bream over the same period, resulting in accelerated moves of stock liquidation with significant losses from many companies within the industry, at prices often lower that their total cost. The consequence of the above was the development of a vicious cycle of exhaustive and potentially unfair competition. In response to these unusual circumstances, the five major Greek export companies in the industry, including NIREUS, proceeded in November 2008 to short-term Memorandum of Cooperation of commercial nature and six-month duration. This action was directly and voluntarily communicated with the initiative of those companies to the Competition Commission, on a confidential basis and in accordance with current legislation, along with many other ongoing and public initiatives to relevant bodies for the purpose of temporary support to the industry. The validity of the above Memorandum of Cooperation was six months and has not been renewed since.
The company reserves the right to study in depth the issued decision and to proceed with the exercise of any legal right, if deemed necessary.