19 December 2003 - 16:43

Royal BAM Group studying decision by NMa to impose fine

Bunnik, 19 December 2003 – Royal BAM Group nv confirms that the Netherlands Competition Authority (NMa) has imposed a fine totalling €27.5 million on various business units within the Group for infringements of the Competition Act. The business units concerned are HBG Civiel bv, HWZ bv, NBM Noordwest bv and BAM NBM Wegenbouw Noordoost bv.

The fine is connected with alleged offences by these business units related to the execution of roads contracts in the North-East of the Netherlands (‘case 3064’) and the construction of infrastructure works in the Haarlemmermeer district (‘case 2863’).

Royal BAM Group will be studying the decision over the next few weeks. If warranted by the findings, the company will be availing itself of the right to lodge an appeal with the NMa.

Regardless of the further development of the proceedings relating to this fine, Royal BAM Group will be making a provision of €27.5 million charged to the result for 2003. This means that the forecast profit for 2003 is lowered from around €80 million to around €52.5 million.

The Royal BAM Group Executive Board has already expressed its deepest regret on previous occasions that – if the allegations are correct – not all of the business units have been adhering to the amended rules introduced in 1992. For several years, the Group has had in place a comprehensive and explicit code of conduct, which was only recently amended in accordance with the guidelines issued by the industry umbrella organisation. Royal BAM Group is absolutely convinced that employees abide by the company’s code of conduct.

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