Industrias Bachoco to appeal US$110,000 fine imposed by Mexico's Federal Commission of Economic Competition for price fixing
November 14, 2012
Industrias Bachoco S.A.B. de C.V. ("Bachoco" or "the Company") (NYSE: IBA; BMV: Bachoco), Mexico's leading producer and processor of poultry and other food products, announced today:
In December 2009, Mexico's Federal Commission of Economic Competition ("CFC") announced an investigation of the Mexican poultry industry regarding possible monopolistic business practices. Bachoco was included in this investigation, and has been required to provide information to the commission since then.
Recently, and as a result of this investigation, the Company received a notification where the CFC determined that Bachoco contributed with other local producers and distributors to fix prices (a prohibited practice in the Mexican poultry industry), in the Peninsula de Yucatan region, and imposed a fine for approximately $110,000 USD. Bachoco does not agree with this determination, and will defend itself according to the provisions of Mexican law.
Today the company issued a press release in Mexico regarding this topic.
Bachoco is committed to free market principles and regulatory compliance.
Industrias Bachoco is the leader in the Mexican poultry industry, and one of the largest poultry producers globally.
The Company was founded in 1952, and became a public Company in 1997, via a public offering of shares on the Mexican and The New York Stock Exchange. Bachoco is a vertically integrated Company headquartered in Celaya, Guanajuato located in Central Mexico. Its main business lines are: chicken, eggs, balanced feed, swine, and turkey and beef value-added products. Bachoco owns and manages more than a thousand facilities, organized in nine productive complexes and 64 distribution centers in Mexico, and a productive complex in the United States. Currently the Company employs more than 25,000 people. In 2011, the Company reported net sales of Ps. 27.7 billion.
The Company is rated AA (MEX), representing high credit quality by Fitch Mexico, S.A. de C.V., and HR AA+ which signals that the Company and the offering both have high credit quality by HR Ratings de Mexico S.A. de C.V.