Battery producer Rombat, a subsidiary of JSE-listed auto parts group Metair, has been handed a €20.2-million fine by the European competition authority.

Metair’s Romanian subsidiary is one of several European battery manufacturers fined by the European Commission for contravening EU competition law.

The commission also determined that Metair and its subsidiary, Metair International Holding Cooperatief, based in the Netherlands, are jointly and severally liable for a portion of the fine, amounting to €11.6-million, based on a legal presumption under EU law of parental liability, as these groups exercised decisive influence over Rombat since its acquisition in March 2012.

The commission has agreed that the fine may be paid over a period of 51 months. with a first instalment of €4.2-million (R89-million) due within three months from December 15, 2025.

The commission also noted that interest shall be levied on the instalments from this date to the payment date, at an interest rate applied by the European Central Bank, plus 1.5 percentage points.

The commission’s December findings conclude an investigation that was launched in 2018 and spanned over seven years.

It targeted the activity of several automotive battery manufacturers in the European industry, including Rombat, as well as the European battery manufacturers association, EUROBAT, and covered the period 2004 to 2017.

Metair says in a statement that the investigation was based on an Information Bulletin published quarterly by EUROBAT, which used statistical data provided by EUROBAT members at the association’s request.

The commission alleged that the manufacturers exchanged commercially sensitive information to determine the surcharge price element of automotive starter batteries sold to vehicle manufacturers.

Metair, however, denies the legal presumption that it exercised decisive influence over Rombat in this matter.

It says the key decisions regarding the implementation of the EUROBAT premium had already been established by the time Metair acquired Rombat in 2012, and that these actions were not flagged during a due diligence process carried out by external advisors.

Metair says the fine is likely to have serious financial implications on Rombat’s business operations.

“The Metair board and Rombat are considering the commission’s findings, which will include an assessment of all legal options, including the extent to which the fine may be enforceable against Metair.

“In addition, the board will evaluate the impact of the obligations of the South African obligor debt package concluded by Metair.”

Metair has cut deep and wide in the past two years to reduce its debt burden.

Metair says Rombat continues to drive its current operations according to the agreed strategy, and remains committed to its business objectives.

Metair holds a 99.4% stake in Rombat, with the company having contributed 14% of group’s revenue in the 2024 financial year.

Rombat distributes its batteries to 45 countries over four continents.