9th Oct 2014 12:05
LONDON (Alliance News) - Royal Mail PLC Thursday said it has set aside a provision of GBP18 million in its half-year accounts to cover a possible fine for an alleged breach of antitrust laws in the parcels market in France, after entering a settlement agreement with the French regulator.
In a statement, the British postal operator said the settlement agreement covers alleged breaches of antitrust laws by its GLS France subsidiary before the end of 2010.
The French competition authority, Autorité de la Concurrence, is continuing an investigation into the alleged breaches, but Royal Mail expects to get a reduced fine because it agreed to settle and provide compliance commitments now.
It doesn't expect the exact fine to be determined until the second half of its 2015/2016 financial year, but has booked the GBP18 million provision in its accounts for the half year to September 28, comprising GBP12 million for a fine estimate and GBP6 million to cover legal costs.
The provision was less than some analysts had expected.
Parcel companies including La Poste, Deutsche Post's DHL, Federal Express, and TNT Express are also under investigation by the French authorities. TNT Express has made a provision of EUR50 million for a possible fine.
Royal Mail expects to put out its half-year results on November 19.
By Steve McGrath; [email protected]; @stevemcgrath1
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
RMG.L