Mexican anti-trust authority, Cofece, fined local steelmaker Villacero MXN 67 million ($3.5 million) for failing to comply with certain restrictions following the purchase of a 29 percent stake at local steel products, services and distribution company Grupo Collado.
According to Cofece, Villacero and Grupo Collado operate in similar markets, selling steel tubes, among other products, and as such Cofece required Villacero to comply with certain conditions.
One of the conditions was that Villacero could not name Villacero-related executives to Grupo Collado’s administration board. Despite the restriction, Villacero named members for both Grupo Collado’s and Villacero’s administration boards, simultaneously.
Cofece said Villacero also failed to present annual reports about the activities of members it appointed for Grupo Collado’s board, as required.
“Those reports were partially presented,” a Cofece press-release said.
Cofece urged Villacero to comply with these and other legal requirements, following the stake acquisition.