• SA cities need foreigners

    We need to protect our cities' cosmopolitan nature, says Mzwandile Jacks.

  • Am I a racist?

    Does hating government's arrogance, nepotism and greed make me a bigot, asks Anton Ressel.

  • Recipe for disaster

    Malema's flames of frustration are fuelling white extremism, says Leopold Scholtz.

Loading...
See More

Sasol slapped with another huge fine

Dec 14 2010 16:46 Fin24

Company Data

Sasol Limited [JSE:SOL]

Last traded 467
Change -11
% Change -2
Cumulative volume 1706832
Market cap 0

Last Updated: 17-04-2015 at 05:00. Prices are delayed by 15 minutes. Source: McGregor BFA

Related Articles

Sasol on track, but rand bites

Sasol faces fine over plastic prices

Settlement to hit Sasol revenue

Ruling on Sasol Nitro postponed

Plastic maker nabbed for price-fixing

Rand is key to Sasol's fortunes

 
Johannesburg - Petrochemicals giant Sasol [JSE:SOL] has been slapped with a R111m fine for anticompetitive behaviour in its polymers unit.

The Competition Commission on Tuesday said it had reached a settlement with Sasol Polymers, a division of Sasol Chemical Industries in which Sasol admitted that the supply agreement between it and another firm, Safripol, resulted in indirect price fixing.

In its investigation, the commission found that Sasol and Safripol engaged in collusive conduct as a result of the implementation of the supply agreement.

This included adopting a pricing formula and the exchange of information relating to the pricing of polypropylene.
 
Sasol Polymers has agreed to pay a penalty of R111 690 000, which represents 3% of its 2009 total annual turnover derived from polypropylene products.

Sasol will pay more than R250m in fines after the Competition Tribunal previously confirmed a settlement order in which it admitted to cartel conduct in the fertiliser industry.

It was also fined R3.7bn by the European Commission for participating in a paraffin wax cartel in October 2008.
 
The commission referred a case of collusion and excessive pricing against Sasol Chemical Industries and Safripol to the tribunal for adjudication on August 12 2010.

This agreement resolves the collusion aspect of the case.

Sasol has also agreed to stop sharing market-sensitive information, including prices and volumes of polypropylene sold.

It will also amend certain provisions of the supply agreement to ensure that prices are set independently.

The agreement is still to be ratified by the Competition Tribunal.

Safripol has already made a deal with the commission, in which it admitted to contravention of the Competition Act and agreed to pay a penalty of R16.5m representing 1.5% of its total annual (2009) turnover from polypropylene products.

The tribunal has confirmed this agreement.

The commission said it found that Sasol had charged its local customers excessive prices for polypropylene and propylene, which had been in line with import parity pricing.

It said that the findings on excessive pricing have been contested by Sasol and are still to be heard by the tribunal.

The investigation was started after the department of trade and industry raised concerns about polymer pricing and its negative effect on SA's manufacturing sector.

Sasol is the dominant supplier of polypropylene for its own use and that of Safripol, the commission said.

It is also the major supplier of polypropylene to the South African market. Polypropylene is a plastics polymer used by plastics converters to manufacture a wide range of products.
sasol  |  price-fixing

NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
17 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

Brought to you by BizNews

More from BizNews

We're talking about:

SMALL BUSINESS

Johannesburg has been selected to host the Global Entrepreneurship Congress in 2017. "[The congress] will ensure that small business development remains firmly on the national agenda and the radar screen of all stakeholders, the Small Business Development minister said.
 
 

Must see! The most luxurious dog house!

This dog house comes with a treadmill and hot tub, you have to see it!

 
 

Luxury living

WIN!
Ridiculous demands people with too much money make
8 of the priciest places to dock your yacht
Habits of the world’s richest people

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Government’s call for the private sector to add power to the grid is:

Previous results · Suggest a vote

Loading...