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SOL - Sasol Limited - Sasol polymers` settlement of section 4 complaint

Release Date: 14/12/2010 16:40:01      Code(s): SOL
SOL - Sasol Limited - Sasol polymers` settlement of section 4 complaint         
Sasol Limited                                                                   
(Incorporated in the Republic of South Africa)                                  
(Registration number 1979/003231/06)                                            
Share codes:     JSE : SOL          NYSE : SSL                                  
ISIN codes:      ZAE000006896       US8038663006                                
("Sasol" or "the Company")                                                      
As previously disclosed by Sasol as part of its ongoing disclosures, the South  
African Competition Commission has been investigating the South African polymers
industry. Sasol Polymers, a division of Sasol Chemical Industries Limited       
("Sasol Polymers"), has now concluded a settlement agreement with the           
Competition Commission ("the Commission") in relation to its existing propylene 
supply agreement ("the Supply Agreement") with Safripol (Proprietary) Limited   
("Safripol").  The Commission concluded that the pricing provisions of the      
Supply Agreement gave rise to indirect price fixing between Sasol Polymers and  
The Supply Agreement was concluded pursuant to concerns raised by Safripol in   
relation to the proposed merger in 1993 of Sasol and AECI Limited`s monomer,    
polymer and certain other chemical operations.  To address these concerns, the  
then Competition Board required a supply agreement, which would ensure          
Safripol`s ongoing access to propylene according to a pricing formula, which    
would result in market-related prices. At the time, neither party understood    
this pricing formula to give rise to competition law concerns. However, the     
Commission, in terms of the current Competition Act, found that the pricing     
formula, which required the exchange of pricing information amounts to indirect 
price fixing.   This contravention is technical in nature and was not as a      
result of an intentional agreement to fix prices.  The terms of the Supply      
Agreement, including the pricing formula, were prompted by the Competition      
Board`s requirements.                                                           
Given the uncertainty surrounding the legal position in relation to the pricing 
formula and the technicality of the matter, it was considered prudent to settle 
the matter.  Sasol Polymers has therefore agreed to pay a penalty of R 111 690  
000, which represents 3% of Sasol Polymers` turnover derived from its sale of   
polypropylene products for its financial year ending 2009. The settlement       
agreement is in full and final settlement of the Commission`s allegations that  
the pricing formula gave rise to indirect price fixing.                         
The settlement agreement is subject to confirmation by the Tribunal.            
Norbert Behrens, general manager group strategy and planning at Sasol said, "As 
previously indicated Sasol completed an extensive competition law compliance    
review in 2009. This is one of the matters outstanding and is now being brought 
to finality, in line with our approach to be fully compliant and resolve any    
competition law issues including technical ones."                               
As part of its investigation into the polymer industry, the Commission has also 
contended that the prices at which Sasol Polymers supplies propylene and        
polypropylene are excessive.  Sasol Polymers does not agree with the            
Commission`s position in this regard and is contesting the Commission`s         
allegations.  Consequently, the Commission`s allegations in respect of excessive
pricing do not form any part of the settlement agreement concluded between the  
14 December 2010                                                                
Deutsche Securities (SA) (Proprietary) Limited                                  
Date: 14/12/2010 16:40:01 Supplied by www.sharenet.co.za                     
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