EC investigates Abengoa on possible biofuel prices manipulation

Oct 8, 2013 - Spanish renewables and engineering group Abengoa (MCE:ABG) said it is being investigated by the European Commission regarding alleged participation in anticompetitive practice aimed at manipulating prices of biofuels.

The EC is probing into the results of Platt's Market on Close (MOC) price assessment for possible manipulation while denying access of companies to the process since April 2013, Abengoa said in a filing with the US Securities and Exchange Commission (SEC) on Friday.

The possible anticompetitive conduct has allegedly existed since 2002 and would likely involve various markets for which the Platts MOC process is used to report prices, including markets for biofuels, Abengoa added.

Abengoa expressed readiness to cooperate in the investigation, which is still in a preliminary phase, and the EC has not initiated formal proceedings.

If the EC finds that the company has participated in anticompetitive practices, it could potentially entail the imposition of fines worth up to 10% of annual revenues and the filing of civil law claims for losses and damages by injured third parties.

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