Bid-rigging: ISG considers action in wake OFT fines

Contractor ISG said it was scrutinising the OFT decision to fine the group because of infringements by two firms before they were bought by ISG.

• View the full list of companies fined

A statement said: "We are currently considering the detail of the OFT's decision to determine if any further actions need to be taken."

Two ISG's subsidiaries involved in breaches of competiton law, the Propencity Group and Pearce Construction (Midlands), were acquired in 2005 and 2007 respectively.

Propencity and Pearce will be fined for breaches of competition law between 2001 and 2005, prior to ISG's ownership. Pearce Construction (Midlands) ceased trading under the then owners Crest Nicholson in 2003.

The fine of £5.2m for Pearce Construction (Midlands) is on a joint and several basis with Crest Nicholson. ISG has a £2m cash backed indemnity from the vendors of Pearce Group.

Under ISG's ownership, the management of Propencity Group was changed and its management systems and procedures investigated, reviewed and changed to ensure conformity with ISG's strict compliance policies.

The fine for Propencity Group was reduced after it co-operated with the OFT investigation and hence the net cost will be £98,042.

ISG said all its companies operated under a strict set of regulations that exceed the minimum standards of commercial compliance set out by legislative bodies.

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