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FTSE 100 paper-and-packaging company Mondi has confirmed that its Vienna office is being inspected by officials from the European Commission.

The company said that it understood the investigation was focused on kraft paper and industrial bags.

It said it was fully co-operating, adding: “Mondi is committed to complying with all applicable competition laws and is not aware of any wrongdoing or contravention of the relevant legislation.”

Although the European Commission said it would not comment on specific companies, it said in a statement that its officials had carried out unannounced inspections at the premises of several companies “active in the sector of kraft paper and industrial paper sacks” across a number of member states.

The EC statement added: “The Commission has concerns that the relevant companies may have violated Article 101 of the Treaty on the Functioning of the European Union, which prohibits anticompetitive practices such as price fixing and customer allocation.”

The Commission said that carrying out such unannounced inspections does not mean that the companies are guilty of anti-competitive behaviour. It added that there is no legal deadline to complete such inquiries.

London-listed shares in Mondi were trading up 0.3 per cent on Tuesday at £19.14, giving the company a market capitalisation of £9.3bn. It has a dual listing on the Johannesburg Stock Exchange.

Copyright The Financial Times Limited 2017. All rights reserved.
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