Wallenius Wilhelmsen

Legal Proceedings Report • Dec 28, 2015

Wilh. Wilhelmsen ASA: Two joint ventures fined by China's National Development and Reform Commission

Wilh. Wilhelmsen ASA: Two joint ventures fined by China's National Development and Reform Commission

China's National Development and Reform Commission

(NDRC) has concluded their investigation into the car

carrying industry and ocean transport to and from

China. EUKOR Car Carriers (owned 40% by WWASA) and

Wallenius Wilhelmsen Logistics (WWL, owned 50% by

WWASA) have been two of several shipping companies

included in the investigation.

The NDRC's investigation concluded that EUKOR and WWL

engaged in agreements prohibited by the Chinese anti-

monopoly law causing restriction on competition in the

Chinese market.

As part of the investigation, EUKOR and WWL have

received RMB 284.7 million (approx. USD 44 million)

and RMB 45.1 million (approx. USD 7 million)

respectively in fines from NDRC. WWASA made a

provision for the outcome of the investigation in the

third quarter 2015, so the fines will not have an

accounting effect in the fourth quarter 2015.

The fine is calculated as a percentage of the

respective company's share of import and export

volumes to/from China.