Sol - Sasol Limited - Referral By Competition Commission Of Polymers Industry Release Date: 12/08/2010 14:16:02 Code(s): SOL
SOL - Sasol Limited - Referral by Competition Commission of polymers industry
investigation to Competition Tribunal for adjudication
(Incorporated in the Republic of South Africa)
(Registration number 1979/003231/06)
ISIN: ZAE000006896 US8038663006
Share codes: JSE - SOL NYSE - SSL
Referral by Competition Commission of polymers industry investigation to
Competition Tribunal for adjudication
As previously disclosed by Sasol as part of its ongoing disclosures, the South
African Competition Commission has been investigating the South African polymers
industry. The Competition Commission announced today that it has referred its
findings to the Competition Tribunal for adjudication.
In its announcement the Competition Commission stated that it has referred
complaints of collusion and excessive pricing in the polymers market against
Sasol Chemical Industries Limited (SCI) and Safripol (Pty) Limited (Safripol) to
the Competition Tribunal for adjudication. It also announced that it has
simultaneously reached a settlement with Safripol in which Safripol admits that
the supply agreement between SCI and Safripol and its implementation amounted to
price fixing in contravention of the Competition Act. The Competition Commission
has indicated that it is seeking an administrative penalty of 10% of SCI`s
annual turnover for each of these alleged contraventions.
The Competition Commission`s allegation of collusion relates to an agreement of
the Sasol Polymers division of SCI with Safripol, which was structured at the
behest of the former Competition Board following the formation of Polifin (the
Sasol / AECI joint venture) in 1994.
The agreement was structured to ensure Safripol`s ongoing access to propylene
supply at a market-related price.
South African propylene and polypropylene prices are comparable to international
prices and hence Sasol believes that there is no legitimate basis for the
Competition Commission`s excessive pricing allegations.
Sasol Polymers has been liaising with the Competition Commission in its
investigation. SCI has not yet received the referral mentioned in the
Competition Commission`s announcement.
Given SCI`s interactions with the Competition Commission and knowledge of this
matter, SCI does not believe that it has breached any competition laws.
Accordingly, at this time, there is no reasonable certainty as to whether or not
SCI will be found to have contravened competition laws as alleged, whether a
penalty will be imposed and the quantum thereof. SCI intends defending the
matter before the Competition Tribunal should an amicable resolution of the
matter not be achieved.
12 August 2010
Issued by sponsor: Deutsche Securities (SA) (Proprietary) Limited
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Date: 12/08/2010 14:16:01 Supplied by www.sharenet.co.za
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