Romanian car battery producer Rombat SA has been fined a total of EUR 20.2 million by the European Commission for breaching European Union competition rules, the Commission said in a decision announced on December 15. Rombat is a subsidiary of the South African automotive components group Metair.

The Commission found that Rombat participated in anti-competitive practices in the automotive battery market, resulting in the imposition of the fine under EU antitrust legislation. 

Of the total amount, Metair and its Dutch subsidiary, Metair International Holding Cooperatief UA, were held jointly and severally liable for EUR 11.6 million, based on the EU law presumption that a parent company exercises decisive influence over its subsidiary.

Metair said in a press release that the penalty would have "serious financial implications for Rombat's business operations," Economedia.ro reported.

The group said its board of directors, together with Rombat's management, is reviewing the Commission's findings and assessing all available legal options.

"The fine is likely to have serious financial implications for Rombat's business operations," Metair said. "The Board of Directors of Metair and Rombat are reviewing the Commission's findings, which will include an assessment of all legal options, including the extent to which the fine can be enforced against Metair."

The company added that it is also evaluating the impact of the decision on its existing debt restructuring arrangements. Metair recently concluded a complex restructuring package, and said the obligations arising from the Commission's ruling could affect the implementation of that agreement.

Under the Commission's decision, the fine may be paid in instalments over a period of 51 months. The first payment, amounting to EUR 4.2 million, is due within three months of December 15, 2025.

Metair said it strongly rejected the Commission's conclusion that it exercised decisive influence over Rombat following its acquisition of the Romanian company in March 2012. The group argued that key decisions related to the implementation of the so-called EUROBAT premium, the additional price element targeted by the investigation, had already been established at the time of the acquisition.

According to Metair, these practices were not identified during the due diligence process preceding the transaction. The company said it continues to analyse the legal basis of the decision and the potential grounds for appeal.

iulian@romania-insider.com

(Photo source: Facebook/Rombat)