EU fines Abengoa US $ 22.5 million for rigging ethanol prices

The competition regulators of the European Union imposed on Friday a fine of 20 million euros (US $ 22.5 million) to the Spanish company Abengoa for fixing the reference prices of the ethanol, within the framework of a campaign against this type of practice, while investigations continue on two other companies.

The European Commission has imposed fines of 1 billion euros in recent years, and regulators on both sides of the Atlantic have taken action against banks for manipulating financial benchmarks.

The European Comission Abengoa, its Belgian rival Alcogroup and the Swedish company Lantmannen had been investigated for possible manipulation of the ethanol benchmarks, published by the energy and raw materials information provider S&P Global Platts.

The European Commission said that Abengoa admitted to having participated in a cartel and having coordinated its commercial manipulation behavior with other companies from September 2011 to May 2014 and agreed to resolve the case with a reduction of the fine.

The Commission did not identify the other companies, but said the investigations were continuing.

“Abengoa’s objective was to artificially increase, maintain and / or prevent the ethanol reference levels published by Platts from being lowered. Abengoa also limited the supply of ethanol delivered in the Rotterdam area, “the EU’s antitrust body said in a statement.

Abengoa said that regulators made a detailed analysis of its financial situation and its viability plans and accepted a substantial cut in the fine, with a structured payment plan spread over several years.

“The sanction, of an amount lower than the provision in the company’s viability plans, does not therefore compromise the restructuring and viability plans underway,” the company said in a statement.

Lantmannen, who had already said he was negotiating to reach an agreement with the Commission, said he would exercise his rights of defense while continuing to cooperate with the regulator.

“Lantmännen Agroetanol’s financial provision in connection with this investigation is considered sufficient,” the company said in a statement. S&P Global Platts said no tampering attempts were found to be successful.

“We maintain that our robust and transparent methodology, and warranties in place, are designed to ensure that Platts publishes assessments that reflect the market value of ethanol and the other raw materials we assess,” said Dave Ernsberger, its chief pricing officer. market, in a statement. Alcogroup did not immediately respond to requests for comment.

Abengoa entered bankruptcy in February after its creditors refused to extend the deadline to negotiate a restructuring of its 6 billion euro debt.

Two rival groups – one led by US venture capital fund Terramar and the other by retail shareholders – are fighting to gain control of Abengoa’s main assets, which have been spun off into an independent holding company.