Two UK Roofing Firms Admit to Lead Cartel - Third Responds

lead rolls|Martin Armour Calder Lead|lead roof

TWO OF THE UK’s largest suppliers of rolled lead have admitted to taking part in anti-competitive arrangements and could face fines of more than £11 million.

The admission from two of the biggest players in the market: Associated Lead Mills Ltd and H.J Enthoven Ltd (trading as BLM British Lead), follows a Competition and Markets Authority (CMA) investigation.

A third company, Calder Industrial Materials Ltd, is under continuing investigation in relation to one of the arrangements and has not made any admissions.

In its original provisional findings, the CMA alleged that Associated Lead Mills, BLM British Lead and Calder Industrial Materials – which together account for about 90% of UK rolled lead supplies – entered into a cartel to share the market amongst themselves through, for example, the allocation of customers.

The CMA has now the three firms with a ‘supplementary statement of objections’, which outlines its updated allegations.

Four illegal arrangements

The CMA’s revised provisional view is that there was not a single overall cartel arrangement, but rather four individual arrangements that broke competition law.

The CMA’s revised provisional findings indicate that Associated Lead Mills and BLM British Lead entered into arrangements including:

sharing the market, including by arranging not to target certain customers
colluding on prices
exchanging commercially sensitive information on prices
arranging not to supply a new business that risked disrupting the firms’ existing customer relationships and was also a potential competitor in the market

Admitting cartel guilt

Both Associated Lead Mills and BLM British Lead have now admitted to their parts in the cartel arrangements, which took place between October 2015 and March 2017.

Associated Lead Mills will pay a fine of £1,815,614 and BLM British Lead will pay a fine of £9,516,572 as part of a settlement agreement with the CMA.

Martin Armour Calder Industrial Materials

For Calder Industrial Materials, the CMA has provisionally found that it became involved, at a later stage, in the arrangement with Associated Lead Mills and BLM British Lead not to supply a new business that risked disrupting the firms’ customer relationships and was a potential competitor in the market.

Calder Industrial Materials has made no admission of liability and the CMA’s investigation is continuing.

Martin Armour, director of Calder Industrial Materials Ltd has issued a statement in response to today’s CMA findings.

Calder Industrial Materials Ltd Statement 12 June 2020

Today the Competition and Markets Authority (CMA) issued a press release in relation to its ongoing investigation into suspected anti-competitive arrangements in the UK roofing materials sector.

The press release confirms that the CMA has reached a settlement with the parent companies of Associated Lead Mills (ALM) and British Lead Mills (BLM) who have admitted to allegations that they entered into anti-competitive agreements involving:

sharing the market, including by arranging not to target certain customers;
colluding on prices;
exchanging commercially sensitive information on prices; and
arranging not to supply a new business that risked disrupting the firms’ existing customer relationships and was also a potential competitor in the market.

The CMA has found that Calder did not participate in the anti-competitive agreements between ALM and BLM relating to market sharing, collusion on prices or the exchange of commercially sensitive information. The case against Calder is now limited to a single allegation that it agreed with ALM and BLM not to supply another company operating as an agent. Calder continues to strongly deny this allegation and will be responding to the CMA’s supplementary statement of objections, which was also issued today, in due course.

The National Federation of Roofing Contractors Comment

The National Federation of Roofing Contractors, representing 1approximately 1,200 roofing contractor members in the UK industry has issued a statement:

“NFRC prides itself on high standards and professionalism and therefore takes allegations of breaches of competition law extremely seriously. Anti-competitive behaviour will not be tolerated. We are aware that Associated Lead Mills and BLM British Lead have admitted to their parts in anti-competitive arrangements. We do not wish to comment on an ongoing investigation, but will do so when the CMA has made their final judgement later this year.”

Parent and related cartel companies

The CMA provisionally considers that those businesses directly involved in the alleged infringements or are liable as parent companies of the undertakings directly involved are:

Associated Lead Mills Limited, Royston Sheet Lead Limited (previously Jamestown Metals Limited) and their parent company International Metal Industries Limited (previously International Industrial Metals Limited)
H.J. Enthoven Limited (trading as BLM British Lead) and its parent company Eco-Bat Technologies Limited
Calder Industrial Materials Limited and its parent company Calder Group Holdings Limited.

CMA Investigation Timeline

July 2017

The Competition and Market Authority (CMA) launches an investigation into the ‘UK roofing materials sector’. It reported opening the case and issuing information requests to the businesses involved.

The CMA also began conducting interviews and visiting and searching premises to obtain information.

December 2017

Investigations Continue into Suspected UK Roofing Materials Cartel

The CMA confirms that it is continuing its investigation and is assessing evidence collected. It reminds businesses that they can apply for immunity from prosecution in exchange for disclosing information about any cartel. Employees and directors can also apply.

February 2018

New Campaign Targets Construction Cartels as Tip Offs Rise by Third

The competition watchdog launches a campaign to encourage whistleblowers to contact the agency in exchange for immunity from prosecution.

May 2018

Investigation Continues into Roofing Materials

CMA updates that it is continuing investigations into suspected anti-competitive arrangements in the UK roofing materials sector. The CMA says that no assumption should be made at this stage that competition law has been infringed.

August 2018

Roofing Materials Cartel Probe Still Continues a Year On

After 12 months the CMA reports it has decided to continue its assessment of the evidence. The case remains open.

March 2019

Rolled Lead Suspected Cartel Companies Named

The CMA reveals the roofing materials investigation is into a suspected cartel formed by three lead manufacturing companies. It provisionally finds that the three principal suppliers of rolled lead broke competition law by forming an agreement with each other to fix lead prices, share out customers between them, exchange commercially sensitive information and restrict the supply of rolled lead to any other company wanting to enter the market.

The companies are revealed to be:

Associated Lead Mills Ltd, which has its headquarters in Hoddesdon, Hertfordshire, and its sister company Jamestown Metals Limited owned by International Metal Industries (2IM Group)
HJ Enthoven Ltd (trading as British Lead Mills Ltd (BLM), which has its headquarters in Welwyn Garden City, Hertfordshire) and its parent company Eco-Bat Technologies Limited, majority owned by EB Holdings
Calder Industrial Materials Ltd, and its parent company Calder Group Holdings Limited.

June 2019

CMA Update Suspected Rolled Lead Cartel Investigation

After two years of investigations, the CMA extends the time allowed for responses to its investigation by the three companies suspected of forming a cartel.

February 2020

CMA Warns Construction on Breaking Competition Law

The CMA issues a general warning to construction firms over price fixing, bid rigging and dividing markets, advising firms to know the difference between cheating and competing.

March 2020

Three-Year UK Lead Cartel Probe to Continue

The CMA extends its investigation by another three months to again allow extra time for responses to be made.