CMPC and SCA accused of running a cartel: Chile's economic prosecutions office (Fiscalía Nacional Económica) accused the powerful CMPC group (controlled by the Matte family) and Swedish-owned SCA of operating a price cartel in the country's paper products market for over 10 years. In a complaint filed with the competition tribunal (Tribunal de Defensa de la Libre Competencia – TDLC), the FNE said the two companies colluded on fixing quotas and prices on toilet paper, paper towels, paper serviettes, facial tissues, and cosmetic tissues. The two companies have combined sales in Chile of around US$400m per annum and control 90% of the market. CMPC owner Eliodoro Matte officially apologised to the public and the company’s consumers for what he described as “these repudiable acts”. President Michelle Bachelet said the matter was “very serious” and that she would submit a bill in congress raising the level of fines for market rigging. Apart from Chile, CMPC, which is also involved in forestry and cellulose, has operations in Argentina, Brazil, Colombia, Mexico, Peru, and Uruguay.
Petrobras announces further losses: State-owned oil company Petrobras announced net third quarter losses of BRL3.76bn (US$1.01bn) as a result of lower international oil prices, the depreciation of the real, and a deep domestic recession. The loss was over three times larger than the market had been expecting, although smaller than in Q314, when the company was in the red by BRL5.34bn. Net revenue fell 6.9% to BRL82.2bn in Q315. But analysts noted that operating results improved, with Ebitda up by 82% to BRL15.5bn. Meanwhile the company was hit in early November by a stoppage by oil workers’ union FUP that reduced output by around 115,000 barrels per day, or 5.5% of the total. On 11 November management offered a 9.5% salary increase, but the union, which is demanding an 18% rise, was reported to have rejected the offer and demanded a meeting with chief executive Aldemir Bendine.
LATAM denies IAG talks: Rumours of discussions on a strategic alliance or even a takeover bid by International Airlines Group (IAG – the alliance between British Airways and Iberia) for LATAM Airlines (the merger formed by LAN of Chile and TAM of Brazil) have been denied. The reports led to a 6% rise in LATAM share prices on 9 November. They were based on a discussion between IAG chief executive Willie Walsh and a group of analysts. According to press reports of the meeting Walsh had said IAG wanted to work more closely with LATAM and might even consider a takeover. However IAG later denied that this had been said, and LATAM issued a formal statement saying the company was “not in conversation with IAG on an ownership stake.” Both companies are members of the Oneworld alliance and have code-sharing agreements.
Pemex further in the red: Mexico’s state oil company Pemex reported net losses of MXN167.57bn (US$9.921bn) in Q315 on the back of lower international oil prices, a fall in crude oil output, and a depreciating peso. The losses were more than double the MXN59.654bn loss in the comparable year-earlier period. Net revenues fell by 22.8% in the quarter to MXN313.77bn. Crude output fell by 5.5% to 2.266m barrels per day (bpd). The price of Mexican mix crude was down by 53.8% to US$41.75 a barrel.
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