INTERVIEW-Turk steel probe could finish before year-end

By Orhan Coskun

ANKARA, June 18 (Reuters) - A Turkish competition investigation into Erdemir (EREGL.IS) and three ArcelorMittal (ISPA.AS)(MTP.PA) units could be concluded before the end of this year, the Competition Board president told Reuters.

An investigation into the companies was launched in April, after complaints of vertical agreements, and since then the scope of the investigation has been broadened, Competition Board President Nurettin Kaldirimci told Reuters in an interview, without giving further details on the nature of the probe.

If the companies are found to have breached competition laws they could face heavy fines.

"The board has taken into consideration the developments in the sector of the past year and other complaints, and has increased the scope of the investigation," he said.

The investigation concerns leading Turkish steel maker Erdemir, ArcelorMittal Ambalaj, ArcelorMittal Celik, and Borcelik, which is part-owned by ArcelorMittal, the world's leading steel producer.

Kaldirimci also said that the watchdog had taken note of ArcelorMittal's announcement on Monday that it had increased its stake in Erdemir to almost 25 percent, but would not intervene at this stage.

The watchdog has also been asked by the energy market regulator EPDK to look into whether fuel retailers were working in concert to set prices. Kaldirimci said there were some signs of possible competition problems in the sector.

The board is already carrying out a study into the sector -- including a look at prices -- and could launch an investigation into whether companies are working in concert to set prices.