STOCKHOLM, May 19 (Reuters) - Swedish paper and hygiene products maker SCA said on Tuesday its joint venture Productos Familia S.A. was under investigation by Colombian authorities over anti-trust issues, but played down the risk of steep fines.
The news follows intense scrutiny of corporate governance at the Swedish company centred around the lavish use of a corporate jet and hunting trips in a saga that has seen both SCA’s former CEO and chairman step down.
Daily Dagens Nyheter reported Productos Familia - 50-percent owned by SCA - was being probed over alleged price cartels including diapers, toilet paper and could face fines of more than 200 million Swedish crowns ($24 million).
SCA said competition authorities were reviewing the joint venture’s operations in Colombia, Ecuador and Peru, as well as it’s wholly owned businesses in Chile, Spain, Poland and Hungary.
“SCA has assessed that the ongoing inquiries will not have a material financial impact,” it said in a statement.
The company said SCA and its joint ventures were cooperating with the authorities and providing the requested information.
$1 = 8.3177 Swedish crowns Reporting by Daniel Dickson; Editing by Niklas Pollard