First Mills says GAC fines levied before privatization

Logo of First Mills

First Milling Co. (First Mills) said today, June 15, that the SAR 10 million fine levied by the General Authority for Competition (GAC) dates back to 2019, before the company’s privatization on December 31, 2020.

The whole fine amount was paid out in 2022 and was allocated within the 2021–2022 financial statements. Therefore, the fine has no current or potential impact on the company’s position, the company said in a statement.

First Mill stressed that the claim and the fine were disclosed in the prospectus for the initial public offering.

An objection was filed before the Supreme Court, the company added, affirming its commitment to its values, namely transparency, responsibility, and integrity.

GAC issued fines of SAR 10 million against First Mills for abusing its dominant position by requiring distributors not to sell competitors’ products, as Argaam earlier reported.