European Commission repays £21m fine to Elementis

The European Commission has handed back a 23.4 million (£21.1 million) fine it imposed two years ago on London-listed global chemicals company Elementis.

The EC said it had repealed the fine from November 2009 when it said Elementis had participated in two price-fixing cartels during the 1980s and 1990s.

Last month the general court of the European Union backed another company, Arkema, which challenged the penalty on the same grounds which Elementis launched its appeal.

The EC will now repay the 24.3 million-plus interest for the period since the fine was paid. That is more than a quarter of Elementis' pre-tax profits last year.

Ten firms were fined a total of 173 million in 2009 after whistle-blowing by one of their rivals, Chemtura. They were found to have conspired to rig prices and exchange information on two additives used in the production of PVC.

The group said: "It is Elementis policy to conduct its business in full compliance with all applicable laws including competition laws."