PETALING JAYA: Leong Hup International Berhad (LHI) has contested the Malaysia Competition Commission’s (MyCC) infringement finding after being accused of forming a “chicken feed cartel” to fix prices.
In a filing with Bursa Malaysia, LHI said that they, along with Leong Hup Feedmill Malaysia Sdn Bhd (LFM), “strongly believe” that the regulator’s findings were without merit.
“In consultation with its external legal counsel, the company and LFM will take the necessary and appropriate action to challenge the decision and apply for a stay.”
Separately, FFM Bhd told the stock exchange it would consult with its external legal counsel to challenge the competition commission’s decision to impose a penalty of RM42.69 million for price-fixing infringement. The group said FFM is of the view that the decision is without merit and would take legal advice “on the appropriate actions to take to challenge the decision”.
FFM, which operates a flour mill and animal feed mill, is a subsidiary of the PPB Group.
Earlier today, MyCC fined LFM, FFM and three other companies a total of RM415 million for forming a cartel to fix prices of chicken feed.
MyCC CEO Iskandar Ismail said the firms allegedly agreed to raise the price of poultry feed, which distorted chicken prices.
Investigations found that the five companies, the country’s biggest chicken feed producers, violated the Competition Act by having an agreement between them with the goal or effect of “preventing, restricting or distorting competition” in any market for goods or services.
LFM was fined RM157,470,027 while Dindings Poultry was fined RM70,023,622.35, followed by FFM Bhd (RM42,689,583), Gold Coin Feedmills (RM97,511,670) and PK Agro-Industrial (RM47,800,793). - FMT
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