Metair's Romanian battery subsidiary fined R389.7 million by European Commission

JSE-listed Metair Investments' Romanian battery subsidiary Rombat has been fined R389.7 million by the European Commission, which is likely to have serious financial implications on Rombat's business.

This was according to Metair, which on Tuesday updated shareholders on the outcome of a Commission investigation launched in 2018, into several automotive battery manufacturers in Europe.

Metair and Rombat's boards said they were considering the Commission's findings, including "an assessment of all legal options, including the extent to which the fine may be enforceable against Metair." The impact of the obligations of the South African obligor debt package concluded by Metair, would also be assessed.

The investigation by the Commission, which covered a period from 2004 to 2017, involved allegations that the manufacturers exchanged commercially sensitive information to determine the surcharge price element of automotive starter batteries sold to Original Equipment Manufacturers.

Metair said on December 15, 2025, that the Commission had indicated, in an advance copy of its report from the investigation, that it may fine Rombat €20.2m, after it had found that Rombat had contravened EU competition law. Rombat subsequently made representations to the Commission.

The Commission also found that Metair and its Dutch subsidiary, Metair International Holding Cooperatief, based in the Netherlands, were liable for a portion of the fine amounting to €11.6m, based on an EU law of parental liability, in that they exercised decisive influence over Rombat since its acquisition on March 14, 2012.

Metair said it refutes the Commission's decision regarding the legal presumption that it exercised decisive influence over Rombat in this matter.

"Key decisions regarding the implementation of the EUROBAT premium had already been firmly established by the time Metair acquired Rombat in 2012 and were not identified during the due diligence process carried out by external advisors," Metair's directors said in a statement.

The Commission had agreed that the fine may be paid over 51 months, with a first instalment of €4.2m due within 3 months from December 15, 2023.

"Rombat continues to drive its current operations according to the strategy agreed with Metair and remains committed to its business objectives," the Metair board said.

Rombat is a leading company in Bistrita-Nasaud County, one of the largest regional employers and a key contributor to Romania's annual state budget.

Metair's share price was untraded at R4.60 on Tuesday afternoon, less than half the R9.46 it traded at the same time last year.

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