A trio of British builders investigated an alleged "cartel"

A "cartel" of three suppliers of building materials has been involved to maintain high prices and reduce competition, said Tuesday the British competition watchdog, while he continued the crackdown on the alleged anti-competitive behavior in the construction sector.

The Competition and Market Authority is investigating MGF Trench Construction Systems, Vp, and Mabey Hire, three major suppliers of earthmoving products, for allegedly sharing prices and business strategy and coordinating their business activities.

The AMC indicated that it had provisionally concluded that the three companies, which provide products to residential complexes, railway lines and waterline upgrades, had formed a cartel. in violation of competition law.

The investigation was revealed after Mabey initiated the whistleblowing and reported the companies' alleged behavior to the regulator. He will now not be fined in accordance with the CMA's leniency program.

Vp and MGF have operated the cartel for nearly two years and Mabey has been participating for five months, the CMA announced.

Vp was the worst performer in the FTSE-All Share Index on Tuesday, dropping nearly 8% in morning trading.

Founded in 1954 and listed in 1963, its business is focused on rental rent for the construction and infrastructure sectors. It is a ground service provider for Network Rail and London Underground, with a market capitalization of over £ 400 million.

MGF and Mabey both belong to private interests and provide products used to protect the excavations and ensure the safety of the sites.

Mabey Hire is part of the family engineering company Mabey Group, which has been in business for nearly 100 years and recently worked on the British Antarctic Survey's research facilities.

MGF was founded in Manchester in 1981 and now operates a rental fleet in England.

"It is crucial that manufacturers and their customers benefit from truly competitive pricing for this vital equipment," said Michael Grenfell, CMA's executive director of law enforcement.

The regulator attacks the construction sector and has imposed millions of pounds of fines on cartels, including a fine of £ 7 million last month to five office companies equipped for violation of competition law . Last month he said he found "a lot of evidence of anticompetitive behavior in the construction industry."

The AMC announced Tuesday that it would hear the statements of the three providers before making a final decision as to whether the law had been violated.

"Mabey has proactively expressed its concerns to the CMA regarding possible anticompetitive behavior, and has given full support and cooperation to their investigation," the company said in a statement.

Vp said in a stock exchange update that the findings only covered part of its business and that it was cooperating with the regulator.

MGF did not respond to a request for comment.