Givaudan, Symrise, DSM shares drop on global fragrance cartel probe
Givaudan, Symrise, IFF, Firmenich named in Swiss cartel probe
Shares in companies drop by more than 2%, underperforming market
Switzerland joins EU, UK, U.S. investigations
Adds analyst, Firmenich comments
By Ludwig Burger and John Stonestreet
March 8 (Reuters) -Shares in Givaudan GIVN.S and Symrise SY1G.DE took a beating on Wednesday after the Swiss antitrust agency named them as part of a quartet of companies in the crosshairs of international competition watchdogs.
Swiss competition commission COMCO said its probe was targeting market leaders Givaudan, domestic rival Firmenich, which is merging with Dutch chemicals group DSM DSMN.AS, U.S.-based International Flavors & Fragrances IFF.N and Germany's Symrise SY1G.DE.
The more than $5 billion scents industry creates and makes fine fragrances for brands including Calvin Klein, Hugo Boss BOSSn.DE and Gucci, while also designing the smell of household products of global companies such as Procter & Gamble PG.N and Colgate-Palmolive CL.N.
News of the probe into the supply of fragrances and fragrance ingredients broke late on Tuesday, when Givaudan confirmed it was being investigated. The Swiss authorities were the first to name all companies involved.
Shares of Symrise, which on Wednesday forecast a 2023 core profit margin slightly below market expectations, dropped 2.6% at 1158 GMT, though the company's chief executive said he did not expect the firm to be affected and its role was primarily that of a witness.
Givaudan dropped 2.8% and DSM lost 3.1%, underperforming a 1% decline in the STOXX Europe 600 Chemicals index .SX4P, while U.S.-listed International Flavors & Fragrances (IFF) was down 2.9% at Tuesday's close.
COMCO said several raids were carried out in conjunction with the European Commission, the U.S. Department of Justice Antitrust Division and the UK Competition and Markets Authority.
The Swiss agency added it acted on suspicion the companies "coordinated their pricing policy, prohibited their competitors from supplying certain customers and limited the production of certain fragrances".
It said that the ingredients in question are used in cosmetics, personal care products, detergents and cleaning products.
"If these concerns prove true it would mean a substantial reputational damage for the fragrance sector and also Givaudan, next to potential fines and future weaker negotiating power," analysts at Swiss brokerage Vontobel said.
The British watchdog on Tuesday set a deadline of early 2024 for analysing and reviewing information gathered from the companies.
Firmenich confirmed that antitrust authorities carried out unannounced inspections at its offices in France, Switzerland and Britain.
The company said it was closely monitoring the situation and fully cooperating with the investigators.
Spokespeople at Symrise and IFF also said the firms were cooperating with authorities.
Symrise said on Wednesday it had a 12% share of the combined market for fragrances, flavours, aroma chemicals and cosmetic ingredients last year, with Givaudan, IFF and Firmenich accounting for 18%, 22% and 11%, respectively.
The German company added that fragrances accounted for 13.2% of the 39 billion-euro overall market, working out to 5.1 billion euros ($5.37 billion) in industry fragrance revenue in 2022.
The upper limit of fines imposed for breaking EU competition law is 10% of a company's global revenue.
($1 = 0.9492 euros)
Reporting by Ludwig Burger in Frankfurt, John Stonestreet in London, Patricia Weiss in Frankfurt and Paul Arnold in Zurich; Editing by Jason Neely and Shounak Dasgupta
면책조항: XM Group 회사는 체결 전용 서비스와 온라인 거래 플랫폼에 대한 접근을 제공하여, 개인이 웹사이트에서 또는 웹사이트를 통해 이용 가능한 콘텐츠를 보거나 사용할 수 있도록 허용합니다. 이에 대해 변경하거나 확장할 의도는 없습니다. 이러한 접근 및 사용에는 다음 사항이 항상 적용됩니다: (i) 이용 약관, (ii) 위험 경고, (iii) 완전 면책조항. 따라서, 이러한 콘텐츠는 일반적인 정보에 불과합니다. 특히, 온라인 거래 플랫폼의 콘텐츠는 금융 시장에서의 거래에 대한 권유나 제안이 아닙니다. 금융 시장에서의 거래는 자본에 상당한 위험을 수반합니다.
온라인 거래 플랫폼에 공개된 모든 자료는 교육/정보 목적으로만 제공되며, 금융, 투자세 또는 거래 조언 및 권고, 거래 가격 기록, 금융 상품 또는 원치 않는 금융 프로모션의 거래 제안 또는 권유를 포함하지 않으며, 포함해서도 안됩니다.
이 웹사이트에 포함된 모든 의견, 뉴스, 리서치, 분석, 가격, 기타 정보 또는 제3자 사이트에 대한 링크와 같이 XM이 준비하는 콘텐츠 뿐만 아니라, 제3자 콘텐츠는 일반 시장 논평으로서 "현재" 기준으로 제공되며, 투자 조언으로 여겨지지 않습니다. 모든 콘텐츠가 투자 리서치로 해석되는 경우, 투자 리서치의 독립성을 촉진하기 위해 고안된 법적 요건에 따라 콘텐츠가 의도되지 않았으며, 준비되지 않았다는 점을 인지하고 동의해야 합니다. 따라서, 관련 법률 및 규정에 따른 마케팅 커뮤니케이션이라고 간주됩니다. 여기에서 접근할 수 있는 앞서 언급한 정보에 대한 비독립 투자 리서치 및 위험 경고 알림을 읽고, 이해하시기 바랍니다.
