Three Directors Fired Over UK Construction Cartel

The Competition and Markets Authority (CMA) has secured the disqualification of 3 company directors, after finding they broke competition law by forming a cartel in the construction industry.

This move follows an investigation by the CMA into 2 of the UK’s largest suppliers of rolled lead, Associated Lead Mills (ALM) and H.J. Enthoven (trading as BLM British Lead), which are based in Hertfordshire. Rolled lead is used mainly for roofing and is an important product for the construction sector.

The companies, which together account for a sizeable proportion of UK rolled lead supplies, admitted last year to forming an illegal cartel. This included breaking the law 4 times by colluding on prices, sharing the rolled lead market by arranging not to target certain customers, and arranging not to supply a new business because it risked disrupting the firms’ existing customer relationships. Each of the arrangements included exchanges of competitively-sensitive information. As a result, the companies were fined £1.5 million and £8 million respectively (US$2.09 million and US$11.15 million respectively).

Reflecting the serious nature of the breaches and the directors’ involvement, the CMA has now secured the disqualification of Mr Jocelyn Campbell (BLM), Mr Graham Hudson and Mr Maurice Sherling (ALM). All were directors at the time the illegal activity took place.