Brazil: An antitrust investigation into alleged price-fixing by Holcim and others in Brazil has ended today. The company could face a fine of up to USD413m if the probe decides that Holcim's behaviour was uncompetitive.

Several cement makers are among the companies named by the Brazilian government's anti-cartel investigation arm (SDE) in an inquiry that began in 2005. According to the Brazilian government, the companies were given until 1 October 2011 to make their final submissions before the SDE gives its opinion to the Administrative Council of Economic Defense (CADE), which will makes a final ruling. The companies involved face fines of up to 30% of their Brazilian revenue if CADE decides they have been running a cartel.

"There is an investigation into the cement industry including Holcim, which started in 2005," said Holcim spokesman Peter Gysel. "This is an ongoing proceeding and we cannot comment further."

Cartel fines are normally limited to 30% of revenue from Brazil, but a recent case showed that repeat offences can draw penalties of up to 50%. In 2010 Brazil's antitrust regulator fined White Martins Gases Industraies USD1.3bn for forming a cartel with four other industrial gas companies. The amount was later reduced to USD0.95bn. Praxair expects to win two appeals to the case.

Holcim previously has been fined by the anti-cartel authorities in Brazil following an investigation that dates back to its activities in 2002. "In 2002, there was an investigation in the aggregates business where the company received a non-material fine," Holcim spokesman Gysel said.

Ian Osburn, analyst for ING Bank, said that if the investigation found against Holcim, the company could face fines of up to 50% of its 2009 revenue in Brazil, which he estimates was around USD820m. Penalties of half of that amount, or USD410m, would reduce the company's 2012 earnings before interest, tax and amortisation by around 15% Osburn said. "In the worse case scenario, the fine would be about 15% of Holcim's 2012 group operating profit. That's significant," he said.