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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                          
Sasol Limited                                                                   
(Incorporated in the Republic of South Africa)                                  
(Registration number 1979/003231/06)                                            
ISIN: ZAE000006896  US8038663006                                                
Share codes: JSE - SOL  NYSE - SSL                                              
("Sasol")                                                                       
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                                                                  
Johannesburg                                                                    
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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