Cartel

EU charges chemical companies with forming cartel

The European Commission said it had charged companies which supply calcium carbide and magnesium powder with forming a cartel in breach of European Union antitrust rules.

"The products under investigation are mainly bought by the steel and industrial gas industries," the Commission said in a statement on Friday. It did not name the companies involved.

Dutch chemicals company Akzo Nobel received a statement of objection regarding its calcium carbide activities from the European Commission on Thursday, a spokeswoman said.

"We will look into it, study it and reply in three months," she said.

In Germany, SKW Stahl-Metallurgie Holding AG said it was also under investigation and would review the allegations.

Akzo Nobel shares were down 1.3 percent by 1231 GMT, underperforming a 0.3 percent lower blue-chip index .AEX. SKW shares fell 21.4 percent in Frankfurt to 19.95 euros.

(Published by Reuters - june 27, 2008)