16th Jul 2014 07:11
LONDON (Alliance News) - Royal Mail PLC said Wednesday that certain group companies have received notice from Autorité de la Concurrence, the French competition authority, that one of its subsidiaries, GLS France, is involved in an investigation which alleges breaches of antitrust laws.
Royal Mail said that the notice alleges breaches of antitrust laws by its GLS France business in connection with a broader investigation into "alleged activities within the industry in France."
In a statement Wednesday the FTSE 100-listed company said, "We are currently considering the notice received from the French regulator. Given the early stage of this matter, we cannot yet determine the amount or range of potential loss; however, it is possible that it could be material."
The General Logistics Systems business operates in the parcels segment, predominantly serving the European business-to-business market, though a business-to-consumer parcels currently represent approximately one quarter of GLS volumes. The company said 71% of GLS?s revenue is generated in three major markets: Germany, Italy and France.
Royal Mail shares dropped at the market open, down 1.68% at 480.50 pence per share, the second biggest faller on the FTSE 100.
By Alice Attwood; [email protected]; @AliceAtAlliance
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