Royal Mail takes 18 mln stg provision as part of French settlement

LONDON, Oct 9 (Reuters) - Britain's Royal Mail (LSE: RMG.L - news) said on Thursday it had taken a financial provision of 18 million pounds ($29 million) after reaching a settlement with French competition authorities in a possible breach of antitrust laws.

Royal Mail, which listed on the stock market a year ago, said in July it had received a notice that one of its subsidiaries in France may have breached competition laws, which could result in a fine.

On Thursday the group said it had entered into a settlement agreement with the French authorities, however the regulator there is still continuing its investigation.

"By agreeing to settle and provide compliance commitments now, Royal Mail will benefit from a reduction to any fine," it said.

Royal Mail said the full amount would be determined in the second half of the year but it has taken a financial provision of 18 million pounds for the half year.

Shares (Berlin: DI6.BE - news) in the group were up 0.9 percent in early trading, in line with the wider FTSE 100.

(1 US dollar = 0.6180 British pound) (Reporting by Kate Holton; editing by Sarah Young)