KUALA LUMPUR (Dec 22): PPB Group Bhd said its 80%-owned subsidiary, FFM Bhd, will challenge the Malaysia Competition Commission's (MyCC) findings of a price-fixing infringement by the company involving poultry feed.
"FFM is of the view that the decision is without merit. It will consult with its external legal counsels on the appropriate actions to take to challenge the decision," the group said in a bourse filing on Friday.
MyCC had investigated FFM and four other feedmillers for allegedly colluding in a "chicken feed cartel" to fix poultry feed prices.
In its decision announced earlier on Friday, FMM was fined RM42.69 million, a reduction from the RM46.36 million imposed under a previous notice issued after MyCC provisionally found the five feedmillers to have infringed the Competition Act 2010.
The feedmillers were accused of entering into anti-competitive agreements and/or concerted practices in increasing the price quantum of poultry feed that contained soybean and maize as its main ingredient, between early 2020 and mid-2022.
The other four feedmillers are Leong Hup International Bhd’s subsidiary Leong Hup Feedmill Malaysia Sdn Bhd, Malayan Flour Mills Bhd's partially-owned Dindings Poultry Development Centre Sdn Bhd, Gold Coin Feedmills (M) Sdn Bhd under Gold Coin Group, and PK Agro-Industrial Products (M) Sdn Bhd under Charoen Pokphand Holdings (M) Sdn Bhd, which in turn is a subsidiary of Thai conglomerate Charoen Pokphand Group Co Ltd.
The total penalties imposed to the five companies amounted to RM415.5 million, the largest amount of fines that has ever been imposed by the quasi-judicial body in its 12-year history.
PPB said the notice served on Friday required FFM to stop participating in anti-competitive agreements in relation to any discussion on price-related matters pertaining to poultry feed.
MyCC also required FFM to submit a monthly report on changes in poultry feed prices and to review its existing competition law compliance training programme.
Shares in PPB finished four sen or 0.27% higher to RM14.70, giving the group a market capitalization of RM20.91 billion. Year to date, the stock has fallen by 14.34%.
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