According to CTK (Czech Press agency), Kaucuk together with other four producers of synthetic rubber are to be fine by the European Commission for cartel agreements on prices today. The fine has not been specified, but there are speculations about the second biggest penalty (range between EUR 790.5m – EUR 478.3m).
Our view: As the fine has not been specified and we do not have any information regarding the appeal process, we see the news as neutral at this point, nevertheless, do not rule out a negative market reaction. Note that Unipetrol plans to finalize the sale of Kaucuk by the end of this year, while negotiations with Dwory on the sale are in final stages.