Icelandic shipowner Eimskip has admitted collusion with Dutch rival Samskip as part of a settlement of a long-running competition probe.
The containership and reefer company will pay a fine of ISK 1.5bn ($12.2m) to the Icelandic Competition Authority (ICA) following a five-year investigation.
The substance of the probe had never been revealed, but Eimskip has now said its operations between 2008 and 2013 were under scrutiny.
"With the settlement, it is acknowledged that there was communication and collusive behaviour with Samskip during the investigation period," the shipping company said.
This entailed "serious infringements" of competition law.
Samskip has been contacted for comment.
New way of doing business
Eimskip emphasised that in recent years fundamental changes have been made to the company's operations.
A new governance structure is in place, and new directors, as well as new executive managers and new main owners. Fish processor Samherji has built a 30% stake in the company.
"By making a settlement in this case the company confirms its will to operate in accordance to the Competition Act and states that the settlement will enhance competition," Eimskip said.
The deal ends all investigations involving the company or its staff.
Chief executive Vilhelm Mar Thorsteinsson called the settlement an important milestone, but also a "difficult one".
"Now the uncertainty surrounding this matter has been removed. Despite the negative financial impact, it was the board of directors' opinion that it would be in the best interests of the company to settle this old case," he added.
Eimskip had been trying to halt the probe in the courts.
In 2013, the company's headquarters, and premises occupied by its subsidiaries Eimskip Island and TVG-Zimsen, were searched by the ICA.
In October 2019, it succeeded in an application to have seized documents from two dawn raids returned and all copies destroyed.
Human rights breached?
In a parallel action, former Eimskip chief executive Gylfi Sigfusson was also battling in the courts to halt the investigation, claiming his human rights were breached
Eimskip has also raised its profit forecast for the second quarter in strong markets.
Ebitda is expected to be considerably higher than a year ago, excluding the fine.
"The operation so far this quarter has been generally good despite challenging market conditions. Volume in the liner services has been strong, the utilisation in the container liner system has been high and the performance in forwarding services has been good," the company said.
Eimskip is expecting Ebitda of between €26m ($31m) and €29m, compared with €16m a year ago.
But with the fine, this will drop to between €16m and €19m.
Profit for the whole of 2021 will be between €77m and €86m, up from its guidance of between €68m and €77m from December.
