Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Exclusive: India probe finds SKF, Schaeffler, Tata Steel units colluded on bearings prices

Published 26/11/2019, 03:41
Updated 26/11/2019, 03:45
Exclusive: India probe finds SKF, Schaeffler, Tata Steel units colluded on bearings prices

Exclusive: India probe finds SKF, Schaeffler, Tata Steel units colluded on bearings prices

By Aditya Kalra

NEW DELHI (Reuters) - An Indian antitrust probe has found that units of Tata Steel Ltd (NS:TISC), Sweden's AB SKF (ST:SKFb) and Germany's Schaeffler AG (DE:SHA_p) colluded on the pricing of bearings, according to an investigation report seen by Reuters.

The Competition Commission of India (CCI) began an investigation in 2017 after receiving allegations of five companies colluding on bearings prices from 2009-2014 to pass higher raw material costs onto customers in the auto sector.

Bearings reduce friction in moving parts, helping smooth the operation of vehicles. India's bearings market is dominated by SKF and Schaeffler and is worth $1.3 billion, showed data from ICRA Research.

CCI's investigations arm, in a report dated May 6 which has not been made public, said it analysed company emails, call records and executive testimonies and concluded that SKF India Ltd (NS:SKFB), Schaeffler India Ltd (NS:SCHE), National Engineering Industries and Tata Steel's bearings division contravened antitrust law by discussing and agreeing prices.

SKF, the world's largest maker of ball-bearings, in a statement said it aided the investigation, and that "we dispute any claim of wrongdoing on the part of SKF".

Schaeffler did not respond to a request for comment. Tata Steel and National Engineering Industries - part of Indian conglomerate CK Birla Group - declined to comment beyond saying the CCI proceedings were confidential.

The investigations arm said it found no evidence against the fifth firm, ABC Bearings, part of U.S. firm Timken Co (N:TKR), the report showed. ABC Bearings declined to comment.

The report also showed the investigations arm considered the collusion lasted through the financial year to March 2011 but found no evidence to indicate when it actually ended.

The four firms, "through personal meetings of key persons, on two occasions shared the strategic information regarding their future efforts to seek price increase from" auto sector companies, the investigations arm said in its 106-page report.

The CCI did not respond to a Reuters request for comment. A person with direct knowledge of the matter said senior CCI officials are reviewing the report and that the antitrust body is able to dispute the findings of its investigation arm.

The CCI can fine firms up to three times the profit made in each year of wrongdoing or 10% of revenue, whichever is higher.

In 2014, European Union antitrust regulators fined SKF, Schaeffler and three Japanese auto parts makers $1.3 billion for taking part in a bearings cartel from 2004 through 2011.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.