KUALA LUMPUR: Malayan Flour Mills Bhd (MFM) and Leong Hup International Bhd have appealed the decision of the Malaysia Competition Commission (MyCC) regarding price-fixing infringement by filing a Notice of Appeal with the Competition Appeal Tribunal.
Simultaneously, both companies have applied for a stay of the decision pending the appeal process, as stated in a filing to Bursa Malaysia today.
This appeal is in response to MyCC's imposition of a RM70.02 million penalty on MFM and its joint venture company, Dindings Poultry Development Centre Sdn Bhd, and RM157.47 million on Leong Hup's wholly-owned subsidiary Leong Hup Feedmill (M) Sdn Bhd for alleged price-fixing.
MFM and Leong Hup, after consulting with external legal counsel, argue that the commission's finding of infringement is without merit. The companies maintain a strong position and are prepared to take necessary and appropriate action to appeal the decision.
Last month, MyCC imposed a substantial penalty of nearly RM415.5 million against five poultry feed manufacturers, including Leong Hup Feedmill (M) Sdn Bhd, FFM Bhd, Gold Coin Feedmills (M) Sdn Bhd, Dindings Poultry Development Centre Sdn Bhd, and PK Agro-Industrial Products (M) Sdn Bhd, for allegedly forming a price-fixing cartel for poultry feed.
The affected companies are collectively evaluating their legal options and maintaining that the commission's decision lacks merit.