Austrian-based Strabag and Porr raided on suspicion of price fixing

According to the Austrian Competition Authority, Strabag and Porr construction companies were among the twenty firms whose offices have been raided on the grounds of price-fixing,

The dawn raids were carried out on May 3rd on four sites belonging to Porr and its subsidiary Teerag-Asdag.

Anti-corruption prosecutors are investigating the firms over alleged price agreements regarding road construction projects in the provinces of Carinthia and Styria as well as renovation works on motorways and federal roads between 2008 and 2014.

Porr said it had initiated an internal investigation into the matter and was co-operating fully with the authorities.

Strabag, one of Europe’s largest construction companies, was also subject to searches over the allegations of price-fixing among its Austrian subsidiaries in Spittal an der Drau and Vienna. The company said it immediately provided the documents and records that were requested to support the investigation.

Strabag said it had called in the Internal Audit Department, which was tasked with reviewing and examining all potentially relevant projects over the next few weeks.

After the announcement, Strabag shares fell as much as 7.7% to a two-month-low of 34.80 euros and Porr shares lost 10.7% to 29.20 euros, its lowest in eight months.