28th Jan 2010 17:55
28 January 2010
COMPASS GROUP PLC
STATEMENT REGARDING PORTUGUESE BUSINESS
Compass Group PLC announced on 26 March 2007 that our Portuguese business, Eurest (Portugal) Sociedade Europeia de Restaurantes, Lda ("Eurest Portugal"), had been visited by the Portuguese Competition Authority ("PCA") as part of an investigation into possible past breaches of competition law by Eurest Portugual and other caterers in the sector in the early 2000s.
Following the conclusion of its investigation the PCA notified Eurest Portugal on 28 December 2009 that it has decided that, in conjunction with 13 other defendant companies and individuals, there has been a breach of Portuguese competition law and that it intended to fine Eurest Portugal €5.2 million (approximately £4.5 million).
Eurest Portugal has actively co-operated with the PCA throughout the investigation and it is disappointing that the PCA has rejected, without justification, much of what has been submitted to it in response to allegations that are unsupported by the evidence. The PCA has also decided not to take into account the extensive economic evidence of vigourous price competition for market share, falling prices and the lack of any tangible effect on the market concerned, all of which are inconsistent with the PCA's findings. Eurest Portugal therefore considers the fine to be excessive and disproportionate and has accordingly filed an appeal today against the decision, which may take some time to reach a conclusion.
ENDS
Enquiries
Compass Group PLC
+44 (0)1932 573000
Investors/Analysts: Andrew Martin, Group Finance Director
Media: Chris King, Group Head of Media Relations
Compass Group is the world's leading foodservice company. We specialise in
providing food, vending and related services on our clients' premises and we
generated annual revenues of over £13 billion in the year to 30 September 2009. The company operates across the following core sectors of Business and Industry (B&I), Defence, Offshore & Remote Site, Healthcare, Education, Sports & Leisure and Vending with an established brand portfolio.
For more information
visit www.compass-group.com.
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