EU Raids Carbon Black Makers (Update)

European anti-trust inspectors have launched raids on six chemicals companies suspected of fixing prices in carbon black, a product used in the tyre industry. The surprise inspections were carried out on Tuesday at premises of the six firms in France, Germany, Italy and Spain, the European Commission said. The European Union’s executive arm said it was looking for “evidence of a cartel agreement and related illegal practices concerning in particular price-fixing for carbon black”.

Degussa has admitted it is being investigated, in addition to Phelps Dodge and Cabot Corp whose shares fell at the news. “Entirely in line with our corporate compliance rules, we are fully cooperating with the investigation,” Degussa said in a statement. “We are confident that the investigation will prove soon that price fixing within the carbon black industry did not happen,” it added.