CMKX: interesting read here with our neighbors Debeers, I especially like the part where last year earnings were 5.5 BILLION
De Beers Settles Case For $10 million, US Return Follows
By Rapaport News Posted: 7/12/2004 12:32 AM
(Rapaport…July 12, 2004) De Beers is set to re-enter the United States market following its reported agreement with the US Department of Justice. It has reportedly pleaded guilty to 10-year-old price-fixing charges and agreed to pay $10 million to settle the case, the Financial Times reported.
The case against De Beers is scheduled to be heard on 13th July 2004 in the federal district court of Columbus, Ohio. Under the agreement, De Beers is expected to pay the fine after pleading guilty to the charge that it conspired with General Electric to fix the prices of industrial diamonds. De Beers' anti-trust wrangles with the Department of Justice date back to 1945. While the US cleared GE of price-fixing, papers were never served against De Beers because it had no legal presence in the US.
The settlement of the case would bring De Beers closer to its customers and also allow executives of the company's London-based diamond trading company to interact directly with American retailers and other business partners.
It will also open new opportunities for the company as the US consumes about 55 per cent of the world's gem diamonds and was the biggest contributor to De Beers' record $5.5bn earnings last year.
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