KUALA LUMPUR: Share price of listed feedmillers Leong Hup International Bhd, Malayan Flour Mills Bhd fell while PPB Group Bhd's was unchangedl after their subsidiaries and two other companies were fined RM415.5 million for being part of a "chicken feed cartel".
The penalty was levied due to their involvement in a "chicken feed cartel", aimed at manipulating poultry feed prices.
At 4pm, Leong Hup's shares dropped by two sen or 3.33 per cent to 58 sen, resulting in a market capitalisation of RM2.10 billion.
The stock opened at 60 sen and maintained its peak at 60 sen.
In the same timeframe, Malayan Flour Mills's shares decreased by 1.5 sen or 2.31 per cent to 64 sen, valuing the company at RM644.61 million.
The counter began the day at 65 sen and reached a high of 66 sen during its trading session.
PPB Group's shares remained unchanged at RM14.66, maintaining a market capitalisation of RM20.86 billion. The counter opened at RM14.62 and reached a peak of RM14.68.
The Malaysia Competition Commission (MyCC) has slapped the largest-ever fines, totaling RM415.5 million, on five feedmillers for colluding in a "chicken feed cartel" to fix poultry feed prices.
The involved companies are Dindings Poultry Development Centre Sdn Bhd (Dinding), FFM Berhad (FFM), Gold Coin Feedmills (M) Sdn Bhd (Gold Coin), Leong Hup Feedmill (M) Sdn Bhd (Leong Hup), and PK Agro-Industrial Products (M) Sdn Bhd (PK Agro).
MyCC also found that, between early 2020 and mid-2022, five enterprises violated Section 4 of the Competition Acts 2010 by engaging in anti-competitive agreements and/or concerted practices to raise the price of poultry feed containing soybean meal and maize.
According to MyCC's investigation, these enterprises hold a combined 40 per cent market share out of 29 feedmillers in the country.
Poultry feed accounted for a significant 72.8 per cent of overall expenses in poultry farming.