KUALA LUMPUR: PPB Group Bhd's flour and animal feed milling subsidiary FFM Bhd will consult with its external legal counsels to challenge the Malaysia Competition Commission's (MyCC) 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.
"It will consult with its external legal counsels on the appropriate actions to take to challenge the decision," it said in a filing with Bursa Malaysia.
In a statement earlier today, MyCC said it has imposed a penalty of nearly RM415.5 million against five poultry feed manufacturers for infringing Section 4 of the Competition Act 2010 (Act 712) by forming a price-fixing cartel for poultry feed.
"The companies were 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.
"Investigation uncovered evidence of identical increments in poultry feed prices among the parties from January 2020 to June 2022 in addition to finding that the five enterprises had employed a calculated strategy to create the illusion of rising poultry feed costs due to hikes in raw material costs," it said. -- Bernama