KUALA LUMPUR: PPB Group Bhd and Leong Hup International Bhd believe that the Malaysian Competition Commission's (MyCC) finding of infringement related to a poultry feed cartel and price fixing is without merit.
In a filing with Bursa Malaysia Securities Bhd, both companies said they plan to challenge the decision.
Additionally Leong Hup said it would seek a stay of the decision with the support of their external legal counsels.
PPB Group's subsidiary FFM Bhd was fined RM42.689 million for the price-fixing infringement.
While Leong Hup's Leong Hup Feedmill Malaysia Sdn Bhd (LFM) fined RM157.47 million.
MyCC's directions to FFM are :
a) to cease and desist from participating and engaging in the anti-competitive agreement in relation to any discussion on price-related matters pertaining to poultry feed;
(b) to submit a monthly report on changes in poultry feed prices;
(c) to review and enhance FFM's existing competition law compliance training program and to enrol certain employees and board members in such program; and
(d) to specify in FFM's code of conduct that the involvement of any employee or board member in any infringements against competition law is a misconduct.
MyCC's directions to LFM are :
a) in respect of submission of a report of poultry feed price changes to MyCC, LFM is required to include specific documentation in its monthly report with specific reporting periods and submission deadlines;
b) LFM is required to implement a competition law compliance programme and enrol broader employees into its competition law compliance programme and training within a specified deadline; and
c) LFM is required to include a provision in its Code of Conduct to acknowledge that involvement of any employee or board member in competition law infringements is a misconduct.