The Antitrust has started asurvey on some of the major companies low voltage copper cable manufacturers in Italy. The companies involved include Bruno Baldassari & F.lli Spa, General Cavi Spa, Icel Scpa, Irce Spa, La Triveneta Cavi Spa, Mondini Cavi Sèa, Pecso Cavi Srl, Prysmian Cavi e Sistemi Italia Srl, in addition to the Italian Association of Electrical Cable and Conductor Industries (Aice).
According to the charges, these companies allegedly participated in aanti-competitive agreement, with coordinated practices on prices and conditions of sale. The alleged agreement, which began in 2005, would have provided for the alignment of price lists and discounts applied to distributors. Furthermore, since 2008, a common system has been introduced for adjust prices to fluctuations in the cost of copper, the so-called “Sales System”.
Investigation launched following a request for clemency
The investigation was initiated thanks to a request for clemency submitted by one of the companies involved, which provided detailed information on the alleged illicit practices in exchange for a sanctioning benefit. This collaboration has allowed the Competition and Market Authority to obtain essential evidence to proceed with the investigation.
Yesterday, officials of the Authority, supported by the Special Antitrust Unit of the Guardia di Finanza, carried out inspections at main offices of the companies involved, as well as at two copper cable distributors and the National Federation of Electrical Material Wholesalers (Fme).
Market Impact: Prysmian Loses on the Stock Exchange
The AGCM investigation is still in the early stages, but it could have repercussions on the Italian copper cable market. If the accusations are confirmed, the companies involved risk heavy economic sanctions in addition to reputational damage.
News of the investigation had an immediate impact on the Prysmian title, which lost 1,26% and traded at 62,64 euros at Piazza Affari, currently the worst of the day. Also Nexans is down 1,9% at the Cac 40 in Paris, as the investigation includes The Triveneta Cables, acquired by Nexans in February 2024.
Analysts from Equita, Intermonte and Banca Akros believe, however, that the'investigation will have negligible impact on Prysmian, considering that the Italian low voltage cable market represents a marginal share of the group's revenues, estimated at less than 3%. The overall weight of low voltage copper is also considered limited.
