The Competition Authority’s investigation of alleged price fixing in Israel’s food and retailing industries is becoming wider. Israeli importer Diplomat Holdings Ltd. (TASE: DIPL) has notified the Tel Aviv Stock Exchange (TASE) that, “On November 9, CEO and controlling shareholder Noam Weiman was questioned on suspicion of committing alleged violations of the Economic Competition Law 1988. At the end of the questioning no restrictions or conditions were placed on Mr. Weiman.”
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The statement added, “The company believes that when the facts become clear, it will emerge that the conduct of Mr. Weiman and the company were without blemish.”
At first it was thought that Weiman was only giving evidence but it is now apparent that he was questioned under caution.
Diplomat is one of Israel’s biggest importers and distributors of food and consumer goods products including such international brands as Heinz, Milka, Mars, Jacobs coffee, Pringles, Starkist tuna, Kellogg’s, Red Bull, Beyond Meat and much more.
The Israel Competition Authority investigation of Diplomat follows yesterday’s raids on the offices of Israel’s largest supermarket chain Shufersal Ltd. (TASE:SAE) and food manufacturer Strauss Group Ltd. (TASE:STRS). Shufersal CEO Itzik Abercohen was among senior executives questioned. Victory Supermarket Chain Ltd. (TASE: VCTR) founder and CEO Eyal Ravid also gave evidence to the investigation.
pVictory said in a statement this morning: “The company believes that the investigation will have no effect on its activity or that of its CEO.”
Many more executives are expected to be questioned in the investigation in the coming days.
Presumption of innocence: Those under investigation are only suspects and have the right to be presumed innocent.
Published by Globes, Israel business news – en.globes.co.il – on November 10, 2021.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2021.