Royal Mail takes 18 mln stg provision as part of French settlement

LONDON: Britain’s Royal Mail said on Thursday it had taken a financial provision of 18 million pounds ($29 million) after reaching a settlement with French competition authorities in a possible breach of antitrust laws.

Royal Mail, which listed on the stock market a year ago, said in July it had received a notice that one of its subsidiaries in France might have breached competition laws, which could result in a fine.

On Thursday the group said it had entered into a settlement agreement with the French authorities, however the regulator there is still continuing its investigation.

“By agreeing to settle and provide compliance commitments now, Royal Mail will benefit from a reduction to any fine,” it said.

Royal Mail said the full amount would be determined in the second half of the year but it has taken a financial provision of 18 million pounds for the half year.

Shares in the group were up 0.9 percent in early trading, in line with the wider FTSE 100.

Source: APP