Go Back Email this Link to a friend

SOL/SOLBE1 - Sasol Limited - Competition tribunal confirms settlement of section

Release Date: 28/02/2011 16:57:01      Code(s): SOL SOLBE1
SOL/SOLBE1 - Sasol Limited - Competition tribunal confirms settlement of section
4 complaint                                                                     
Sasol Limited                                                                   
(Incorporated in the Republic of South Africa)                                  
(Registration number 1979/003231/06)                                            
Sasol Ordinary Share codes:        JSE  : SOL          NYSE : SSL               
Sasol Ordinary ISIN codes:         ZAE000006896        US8038663006             
Sasol BEE Ordinary Share code:     JSE  : SOLBE1                                
Sasol BEE Ordinary ISIN code:      ZAE000151817                                 
("Sasol" or "the Company")                                                      
Competition tribunal confirms settlement of section 4 complaint                 
The Competition Tribunal ("the Tribunal") today announced that, in terms of a   
consent order granted on 24 February 2011, it has confirmed the settlement      
agreement ("the Settlement Agreement") reached between the Competition          
Commission ("the Commission") and Sasol Polymers, a division of Sasol Chemical  
Industries Limited.                                                             
The Settlement Agreement related to Sasol Polymers` existing propylene supply   
contract with Safripol ("the Supply Agreement").  On 12 August 2010, the        
Commission referred a complaint to the Tribunal, in which it contended that the 
pricing provisions of the Supply Agreement gave raise to indirect price fixing  
between Sasol Polymers and Safripol.  The pricing provisions were, however,     
inserted into the Supply Agreement with the  knowledge of the then Competition  
Board in relation to the proposed merger, in 1993, of the monomer, polymer and  
certain other chemicals operations of Sasol and AECI Limited.                   
In Sasol Polymers` view, any contravention of the Competition Act (Act 89 of    
1998), as amended, (the "Act") as a result of the Supply Agreement has its      
origins in these pricing provisions rather than any intention to contravene the 
Act.  Given the uncertainty surrounding the legal position in relation to the   
pricing formula and the interpretation of section 4(1)(b) of the Act, it was    
considered prudent to settle with  the Commission by accepting that the Supply  
Agreement gave rise to indirect price-fixing.                                   
As communicated in our press release on the 14th of December 2010, in terms of  
this Settlement Agreement, Sasol Polymers has agreed to pay a penalty of R 111  
690 000, which was subject to confirmation by the Tribunal, in full and final   
settlement of the Commission`s allegations that the pricing formula gave rise to
indirect price fixing.                                                          
Sasol Polymers and Safripol have also reached agreement on the key terms that   
are to govern the future monomer supply relationship between the parties, which 
we consider to be fully compliant from a competition law perspective.           
Norbert Behrens, the Group General Manager: Strategy and Planning at Sasol,     
said, "At Sasol we are committed to comply with all legislation and hence to    
resolve any competition law issues where possible.  This matter is one of the   
outstanding competition law issues and we are pleased that this matter has now  
been resolved."                                                                 
28 February 2011                                                                
Issued by Sponsor: Deutsche Securities (SA) (Pty) Limited                       
Date: 28/02/2011 16:57:00 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.                                          

Email this JSE Sens Item to a Friend.

Send e-mail to
© 2018 SHARENET (PTY) Ltd, Cape Town, South Africa
Home     Terms & conditions    Privacy Policy
    Security Notice    Contact Details
Market Statistics are calculated by Sharenet and are therefore not the official JSE Market Statistics. The calculation/derivation may include underlying JSE data.