CVC, Bencis fined in Dutch flour cartel case

Ellie Pullen
08 January 2015

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CVC Capital Partners and Bencis Capital Partners have both been fined by the Dutch Authority for Consumers & Markets (ACM) for their involvement as past shareholders of flour producer Meneba, which was found to be part of a flour cartel from 2001-2007.

In 2010, the Netherlands Competition Authority (NMA – now part of ACM) imposed fines totalling €81.6m on 15 flour producers in the Netherlands, Belgium and Germany. These firms were found to have reached agreements in order to restrict competition, according to ACM, and collectively commanded a 65% share of the flour market.

Meneba itself was fined €9m in December 2010, receiving its fine alongside two other Dutch firms, three Belgian firms and eight German firms. Meneba successfully applied for leniency and saw its fine reduced by 10%.

While Meneba is now no longer owned by neither Bencis nor CVC – with CVC having sold the asset to Bencis in 2004 – investigations by ACM into Meneba's involvement in the flour cartel have been ongoing, resulting in the announcements made at the start of the year regarding ACM's decisions to fine both private equity firms that had backed the business during the 2001–2007 period.

According to the separate public decisions now filed on ACM's website, CVC has been fined a total of €900,000, while Bencis will receive a fine somewhere between €1–1.5m. The decision by ACM marks the first time it has fined investment firms.

CVC's fine has been split equally between Capital Investors Group Limited (CIGL) – the ultimate parent company of CVC in the transaction – and CVC Capital Partners Europe Limited (CCPEL).

Both CVC and Bencis declined to comment.

In a statement regarding the fines, ACM said: "ACM is of the opinion that investment firms, too, can be held responsible for the behaviour of the firms they own [through funds], particularly if the investment firm in question has decisive influence. ACM has concluded that this was the case with the investment firms which have now been fined."

CVC acquired Meneba in May 1997 for around €221m, according to unquote" data, with CVC providing around €61.7m in equity. Gilde Investment Management co-invested alongside the firm.

In December 2004, CVC and Gilde sold Meneba to Bencis for €210m, according to unquote" data, with debt provided by ABN Amro Bank and Rabobank.

In July 2011, Bencis sold Meneba back to the company's management. At the same time, Nimbus Investments acquired Meneba Weert, the company's feed and food specialities division. The following year, Meneba Weert was renamed Unicorn Grain Specialities.

In July 2013, Nimbus sold Unicorn to Nordian Capital Partners, formerly known as Rabo Capital until it span out from Rabobank in September last year.