Rubis SCA (EPA:RUBF) stock dropped 5.2% after the French energy company was hit with a substantial fine by the French Competition Authority for alleged anti-competitive practices in Corsica’s fuel sector.

The authority imposed a €64.24 million penalty on Rubis SCA, jointly with its subsidiary Rubis Énergie, plus an additional €430,000 jointly with former subsidiary Rubis Terminal.

The sanctions were part of a broader €187.49 million penalty against several market participants for alleged anti-competitive practices in the supply, storage, and distribution of fuels in Corsica between 2016 and 2022.

Rubis strongly contested the decision in a statement released Monday, saying it is "appalled by the content of the decision, which fails to reflect the actual facts." The company "firmly denies the practices alleged by the Authority" and maintains it has worked to ensure reliable and competitive fuel supply for the Corsican market.

The Paris-based company, which specializes in the distribution of petroleum products, stated it is reviewing the decision with plans to file an appeal before the Paris Court of Appeal.

Rubis also reaffirmed its commitment to comply with all applicable regulations, including competition law.

The penalty comes just days after Rubis announced that its subsidiary Rubis Énergie had secured a €1.1 billion syndicated loan for refinancing existing debt.

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