Watchdog keeps tabs on Sasol

Johannesburg - The Competition Commission has "strong grounds to suspect" continued anti-competitive practices in Sasol's chemical industries division.

This statement was made on Wednesday by the commission's Simon Roberts, during a hearing by the Competition Tribunal.

The tribunal confirmed the R251m settlement agreement between Sasol Nitro, a division of Sasol Chemical Industries, and the Competition Commission for cartel conduct in the fertiliser business.

"We want to still establish if it (anti-competitive behaviour) is ongoing," Roberts said.

Sasol Chemical Industries was at the centre of an investigation into collusive conduct referred by Nutri-Flo. Omnia and Kynoch (now Yara), together with Sasol Chemical Industries, allegedly agreed to fix prices and grant discounts.

An original fine of R188m was increased to R251m after more information was uncovered last week during the course of Sasol's own ongoing investigation into anti-competitive behaviour within its fertiliser and phosphoric acid business.

"The remainder of the Nutri-Flo matter and the Profert matter, which deal with allegations of abuse of dominance in the market place, form the subject matter of continuing engagement between Sasol and the Competition Commission," Sasol said in a statement to the JSE.

The tribunal hearing held on Wednesday at the department of trade and industry (DTI) was attended by Sasol and its CEO Pat Davies, the Congress of South African Trade Unions (Cosatu), Grain SA, the Transvaal Agricultural Union and the National Consumer Forum as well as legal advisers representing the commission.

The penalty reprsents 8% of the division's turnover, but Cosatu's industrial policy co-ordinator Jonas Mosia said "the company (Sasol) won't feel the impact of the penalty."

On Wednesday afternoon, Sasol was trading down 0.22% to R303.62

- Fin24.com