In separate regulatory filings on Thursday, Aisha Steel Mills Limited (ASML) and International Steels Limited (ISL) notified the Pakistan Stock Exchange (PSX) that they will pursue legal recourse against heavy financial penalties imposed by the Competition Commission of Pakistan (CCP) for anti-competitive practices.
The disclosures, addressed to the General Manager of the PSX, stated that the companies are currently reviewing the details of the CCP order.
“In light of the Order issued by the Competition Commission of Pakistan (CCP) and the penalty imposed on Aisha Steel Mills Limited… the matter is currently under review, and the Company will pursue appropriate legal recourse as deemed necessary,” ASML stated in its filing.
In a near-identical disclosure, International Steels Limited confirmed the same course of action, stating it “is reviewing the details and will take appropriate legal steps as needed.”
The announcements come after the CCP found both steel manufacturers guilty of cartelization and price-fixing, imposing a massive penalty of Rs. 648.3 million on ASML and Rs. 914.2 million on ISL. The commission’s order concluded that the two companies had engaged in the “most egregious form of cartelization,” coordinating pricing strategies and exchanging sensitive information, which distorted competition in the flat steel market.
The fines represent 1% of each company’s annual turnover for the financial year 2021-2022. The CCP’s investigation, which began in 2021, found evidence that the cartel operated for over three years, from July 2020 to December 2023.
The filings were made in compliance with the Securities Act, 2015, and the PSX Rule Book to inform all stakeholders of the material development.
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