Jan. 10 (Bloomberg) -- Nippon Yusen K.K., Japan’s largest shipping line, fell the most in 10 weeks in Tokyo trading after saying it will book a 13.5 billion yen ($129 million) charge for a fine from the Japan Fair Trade Commission.
Nippon Yusen dropped 2.8 percent to 316 yen as of 9:25 a.m., headed for the biggest decline since Nov. 1, after falling as much as 3.7 percent. Kawasaki Kisen Kaisha Ltd., Japan’s third-largest shipping line, which said yesterday it received a notice about a fine, fell as much as 1.9 percent.
The commission may fine five shipping lines a total of 22 billion yen, Jiji Press reported yesterday. Japanese antitrust regulators raided the offices of Nippon Yusen, Kawasaki Kisen and three other shipping lines in September for a possible breach of an anti-monopoly act involving price-fixing.
The “developments do not represent the end to the bad news,” Seigo Ando and Yusuke Aramaki, analysts at Mitsubishi UFJ Morgan Stanley Securities Co. in Tokyo, wrote in a note yesterday. “Shipping firms are likely to face additional financial penalties from regulators in the U.S. and Europe.”
The company plans to book the charge in the third quarter after the regulator’s notice that it would impose the fine following an investigation into a possible breach of antitrust rules in the car-shipping business, Nippon Yusen said yesterday.
In August, Nippon Yusen said it was accused in a lawsuit in Ontario, Canada, of fixing prices on car-carrier services.
Mitsui O.S.K. Lines Ltd., Japan’s second-largest shipping line, fell as much as 1.1 percent. The Tokyo-based company didn’t make any announcement regarding a fine.
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