TLALNEPANTLA DE BAZ, Mexico--(BUSINESS WIRE)--Mexichem, S.A.B. de C.V. (BMV: MEXCHEM*) (“The Company” or “Mexichem”) announces that its Brazilian subsidiary, Mexichem Brasil Industria de Transformação Plástica, Ltda. (formerly Amanco Brasil, Ltda.), has reached a cease and desist agreement with the Administrative Council of Economic Defense in Brazil (CADE in the Portuguese acronym). Mexichem’s subsidiary was notified by CADE in the second quarter of 2016 of alleged violations of competition laws in Brazil, supposedly committed by the subsidiary and some of its former employees from 2003 to 2009. Since 2016, the Company recognized, in its financial reports, the existence of a contingent liability associated with this investigation, until the fourth quarter of 2017 it was able to estimate in a more reliable basis and according with the information available at that time, the potential existence of a financial liability which was included and announced in such report.
Today, the agreement was approved by the Tribunal of the CADE in accordance with Article 10, subsection VII, of Law N ° 12529, of November 30, 2011, in compliance with the decision of the Court rendered in the 116th Session of the Ordinary Judgment held on December 13, 2017. By means of this agreement, Mexichem Brasil Industria de Transformação Plástica, Ltda. (formerly Amanco Brasil, Ltda.) has committed to pay a pecuniary contribution of R$95.1 million within 240 days following the date on which the agreement is published in the official gazette of such country. CADE also imposed pecuniary contributions to former employees who were part of the Company during the investigated period.
Mexichem is fully committed to complying with local regulations in all of the countries in which it has operations and has implemented all corrective measures required.
Mexichem is a global leader in plastic piping and one of the world’s largest chemical and petrochemical companies. The company contributes to global development by delivering an extended portfolio of products to high growth sectors such as infrastructure, housing, agriculture, datacom and water management, among others. With operations in 41 countries, 137 facilities worldwide and more than 22,000 employees, Mexichem has the rights to produce fluorspar in two mines in Mexico, as well as 8 training academies and 17 R&D labs. Operations are divided into three Business Groups: Fluent, Vinyl and Fluor. Mexichem has annual revenues of US$5.8 billion and has been traded on the Mexican Stock Exchange for more than 30 years. The company is member of the Mexican Stock Exchange Sustainability Index and the sustainability emerging markets index FTSE4Good.
In addition to historical information, this press release contains "forward-looking" statements that reflect management's expectations for the future. The words “anticipate,” “believe,” “expect,” “hope,” “have the intention of,” “might,” “plan,” “should” and similar expressions generally indicate comments on expectations. The final results may be materially different from current expectations due to several factors, which include, but are not limited to, global and local changes in politics, the economy, business, competition, market and regulatory factors, cyclical trends in relevant sectors; as well as other factors that are highlighted under the title “Risk Factors” on the annual report submitted by Mexichem to the Mexican National Banking and Securities Commission (CNBV). The forward-looking statements included herein represent Mexichem’s views as of the date of this press release. Mexichem undertakes no obligation to revise or update publicly any forward-looking statement for any reason unless required by law.”
Mexichem has implemented a new Code of Ethics that rules its relationships with its employees, clients, suppliers and general groups. Mexichem’s Code of Ethics is available for consulting in the following link: http://www.mexichem.com/Codigo_de_etica.html Additionally, according to the terms contained in the Securities Exchange Act No 42, Mexichem Audit Committee established a mechanism of contact, which allows that any person that knows the unfulfilment of operational and accounting records guidelines and lack of internal controls of the Code of Ethics, from the Company itself or from the subsidiaries that this controls, file a complaint which is anonymously guaranteed. The whistleblower program is facilitated by a third party. The telephone number in Mexico is 01-800-062-12-03. The website is http://www.ethic-line.com/mexichem and contact e-mail is email@example.com. Mexichem’s Audit Committee will be notified of all complaints for immediate investigation.