Paris, July 6, 2011 - In its press release dated 12 February 2009, Nexans confirmed that it, along with other companies, was under investigation for anticompetitive behavior in the sector of submarine and underground power cables as well as related accessories and services. The Company then indicated and has continued to do so in subsequent communications, the material adverse effect that the fines and associated consequences could have on the earnings and financial situation of the Group (*).
Nexans confirms that it and its subsidiary Nexans France SAS, have received a Statement of Objections (**) on July 5th from the Directorate-General of Competition of the European Commission. The sending of a Statement of Objections does not prejudice the final outcome of neither the proceedings nor the amount of the fine.
Nexans will undertake an analysis of the numerous complex elements contained in the Statement of Objections, will respond to the European Commission in the second semester of 2011.
*The reader is invited to consult the Registration Document of 2010, available at www.nexans.com/2010rd, which includes the risk factors of the Group and notably those related to the competition investigations in Europe and in other countries (see pages 37 and 244-245 in the Registration Document).
**A Statement of Objections is a procedural document in competition investigations whereby the European Commission informs parties concerned of its preliminary view in relation to a possible infringement of EU competition law. The recipient of a Statement of Objections may respond in writing, by presenting all elements and information in its favor which may limit the accusations made by the Commission. The recipient may also ask to be heard to present its arguments on the investigation. The sending of a Statement of Objections does not prejudge the European Commission's final decision in the proceedings.
With energy as the basis of its development, Nexans, worldwide expert in the cable industry, offers an extensive range of cables and cabling systems. The Group is a global player in the infrastructure, industry, building and Local Area Network markets. Nexans addresses a series of market segments: from energy, transport and telecom networks to shipbuilding, oil and gas, nuclear power, automotives, electronics, aeronautics, material handling and automation. Nexans is a responsible industrial company that regards sustainable development as integral to its global and operational strategy. Continuous innovation in products, solutions and services, employee development and engagement, and the introduction of safe industrial processes with limited environmental impact are among the key initiatives that place Nexans at the core of a sustainable future. With an industrial presence in 40 countries and commercial activities worldwide, Nexans employs 23,700 people and had sales in 2010 of 6 billion euros. Nexans is listed on NYSE Euronext Paris, compartment A. For more information, please consult www.nexans.com