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
Disclaimer - Forward-looking statements:
In this document we make certain statements that are not historical facts and
relate to analyses and other information which are based on forecasts of future
results and estimates of amounts not yet determinable. These statements may
also relate to our future prospects, developments and business strategies.
Examples of such forward-looking statements include, but are not limited to,
statements regarding exchange rate fluctuations, volume growth, increases in
market share, total shareholder return and cost reductions. Words such as
"believe", "anticipate", "expect", "intend", "seek", "will", "plan", "could",
"may", "endeavour" and "project" and similar expressions are intended to
identify such forward-looking statements, but are not the exclusive means of
identifying such statements. By their very nature, forward-looking statements
involve inherent risks and uncertainties, both general and specific, and there
are risks that the predictions, forecasts, projections and other forward-looking
statements will not be achieved. If one or more of these risks materialise, or
should underlying assumptions prove incorrect, our actual results may differ
materially from those anticipated. You should understand that a number of
important factors could cause actual results to differ materially from the
plans, objectives, expectations, estimates and intentions expressed in such
These factors are discussed more fully in our most recent annual report under
the Securities Exchange Act of 1934 on Form 20-F filed on 9 October 2009 and in
other filings with the United States Securities and Exchange Commission. The
list of factors discussed therein is not exhaustive; when relying on forward-
looking statements to make investment decisions, you should carefully consider
both these factors and other uncertainties and events. Forward-looking
statements apply only as of the date on which they are made, and we do not
undertake any obligation to update or revise any of them, whether as a result of
new information, future events or otherwise.
Date: 12/08/2010 14:16:01 Supplied by www.sharenet.co.za
Produced by the JSE SENS Department .
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.