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Exxon Mobil, Total, Eni Said to Face EU Fines in Cartel Probe

By Matthew Newman

Sept. 30 (Bloomberg) -- Exxon Mobil Corp.,Total SA and Eni SpA will be fined by European Union regulators over claims they fixed the price of paraffin wax used in candles and waxed paper, four people with knowledge of the EU investigation said.

The European Commission in Brussels will levy the penalties as soon as tomorrow, said the people, who can't be identified because the decision isn't yet public.

Repsol YPF SA, Spain's largest oil company, German specialty chemicals maker H&R Wasag AG, and Sasol Ltd., South Africa's biggest fuel supplier, will also be fined, the people said. They didn't specify the amount of the penalties. Sasol has said its fine will be discounted because it cooperated with the probe.

Neelie Kroes, the EU's competition commissioner, has made fighting cartels one of her main priorities since her five-year term began in 2004. She has refocused the competition department's enforcement, assigning more than 60 officials into five units to conduct raids and probe companies.

``The commission will be vigilant against cartels,'' said Frank Fine, an antitrust lawyer in Brussels, who isn't involved in the case. ``The commission needs to be tough because costs are going up and there will be an urge to conspire.''

In June, the commission accused companies in the paraffin wax industry of participating in an alleged price-fixing cartel. The agency didn't identify the companies.

Jonathan Todd, a commission spokesman, had no comment. Elisabeth de Reals, a spokeswoman at Total, Erika Mandraffino, a spokeswoman at Eni and Kristian Rix, a spokesman at Repsol, had no comment. Exxon Mobil spokesman Tony Cudmore didn't immediately respond to a voicemail.

Johann van Rheede, a spokesman at Sasol, said the company is ``awaiting the outcome.''

-- Editor: Jeff St.Onge, Dan Liefgreen

To contact the reporter on this story: Matthew Newman in Brussels at Mnewman6@bloomberg.net.

Last Updated: September 30, 2008 12:57 EDT

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