Johannesburg - Pioneer Foods is facing another penalty of up to R180m for collusive behaviour in its maize and wheat milling business, while it is still mulling over whether it will contest competition authorities' R195m fine in the bread cartel case.

Speaking at the food giant's annual general meeting on Friday, Pioneer chairperson Boy Blanckenberg told shareholders the Competition Commission indicated it had concluded its investigation on the maize and wheat milling issue.

The commission said it was ready to refer its findings and proposed fine to the Competition Tribunal, but was open to negotiations to settle the matter without making a binding legal finding.

The R180m is equivalent to the maximum permissible fine of 10% of revenue for Pioneer's wheat and flour business, during the period when the alleged offence occurred.

"In this instance, Pioneer Foods has met representatives of the commission and intends to respond formally to the commission's invitation to engage in discussions and cooperate with the commission with a view to reaching a settlement," said Pioneer.

It seems as if Pioneer may have decided not to contest the R195m fine in the bread cartel case - handed down earlier in February - based on Blanckenberg's statement that the group's management had been "instructed to bring the matter to a swift close". It also hopes a quick resolution may entice the commission to lower the penalty in the maize and wheat milling case.

"The company regrets that its handling of the complaint referral [in the bread cartel case] created the impression of being obstructive," said Blanckenberg. "It [the board] has never and will never knowingly condone anticompetitive behaviour."

- Fin24.com