Chemical conspiracy
23 Sep 2004
Degussa UK Holdings, the international chemical producer based in Britain, has agreed to plead guilty and to pay a $1.5 million fine for its participation in a criminal conspiracy that suppressed competition in the world markets for organic peroxides, according to the US Department of Justice.
Organic peroxides are industrial chemicals used in the production of numerous plastics and rubbers and the manufacture of polyvinyl chloride, high and low-density polyethylene, polypropylene, and most polystyrene products such as containers and packaging.
Degussa UK Holdings was charged in US District Court in San Francisco with one count of conspiring to fix the prices of organic peroxides, specifically t-butyl perbenzoate and t-butyl peracetate, sold from August 1997 until March 1998. Degussa UK Holdings, which is now a subsidiary of German chemical giant Degussa Aktiengesellschaft, operated independently at the time of its criminal offense under the name Laporte plc.
Under the terms of a plea agreement, which must be approved by the court, Degussa has agreed to cooperate fully with the ongoing federal investigation of anticompetitive behavior in the organic peroxides industry.
Degussa UK Holdings is the second company to agree to plead guilty to participating in this conspiracy. In March 2002, the French chemical company Elf Atochem pleaded guilty and was sentenced to pay a $3.5 million fine for its involvement in the same conspiracy.
