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Trade in crop protection products: Cartel Office and BayWa reach settlement

BayWa AG, Munich and the German Federal Cartel Office have agreed to end the antitrust proceedings concerning trade in crop protection products. The company has decided to settle in order to end the complex, time-consuming and resource-intensive proceedings. The settlement includes the payment up to €68.6 million. For legal reasons, this sum could be reduced in the coming weeks. Any negative impact on earnings in 2019 resulting from this agreement with the cartel office will be fully offset by extraordinary income from divestments. Notwithstanding this, the Management Board continues to expect earnings to increase in 2019 compared to 2018.

Since the beginning of 2015, the German Federal Cartel Office has been investigating allegations of anticompetitive agreements between thirteen suppliers of crop protection products. BayWa AG has cooperated fully with the Federal Cartel Office to clarify the allegations. After careful consideration the company has accepted the settlement in order to create legal certainty for the company and to protect the interests of its shareholders.

BayWa points out that the customers did not suffer any economic loss in connection with this situation. According to BayWa, the company has always had in place a highly individualized pricing structure related to gross prices of crop protection products.



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