To view the PDF file, sign up for a MySharenet subscription.

THEE - The Competition Commission - Outcome of Competition Tribunal hearings

Release Date: 22/02/2012 12:26
Code(s): JSE
Wrap Text

THEE - The Competition Commission - Outcome of Competition Tribunal hearings OUTCOME OF COMPETITION TRIBUNAL HEARINGS (Following is a guideline for journalists. The information can be used but please do not quote Nandi Mokoena or the Tribunal) 22/02/2012 Cases 1.Settlement agreement between the Competition Commission and Engen Petroleum Limited; 2.Settlement agreement between the Competition Commission
and Shell South Africa Marketing (Pty) Limited 1. Tribunal approves settlement agreements with oil companies Earlier today the Competition Tribunal approved the settlement agreements between the Competition Commission and two oil companies, namely Engen Petroleum Limited and Shell South Africa Marketing (Pty) Limited. Please see the Competition Commission`s media release below, which it issued on 21 February 2011, for background on these agreements. MEDIA RELEASE 21 February 2012 Two major oil companies settle bitumen cartel case The Commission has reached settlement agreements with two major oil companies, namely Engen Petroleum Limited (Engen) and Shell South Africa Marketing (Pty) Limited (Shell) in which they admit to having fixed the price of bitumen with other oil companies by collectively determining and agreeing on pricing principles, including a starting reference price and monthly price adjustment mechanism. Engen has agreed to pay a penalty of R28 800 000 and Shell has agreed to pay R 26 259 480. These settlement agreements follow the Commission`s referral on 04 March 2010 of its findings against the Southern Africa Bitumen Association (SABITA) and seven major oil companies namely, Chevron SA (Pty) Ltd, Engen, Shell, Total SA (PTY) Ltd, Masana Petroleum Solutions (Pty) Ltd, Sasol Limited and Tosas (Pty) Ltd to the Tribunal for adjudication. The Commission did not seek a penalty from Sasol and its subsidiary, Tosas, which were granted conditional immunity following the leniency application filed with the Commission by Sasol on 12 January 2009. Subsequent to the referral, the Commission previously concluded settlement agreements with Masana and SABITA in 2010 and 2011, respectively. Bitumen is one of the by-products from crude oil refining. Bitumen and modified bitumen products are used to surface and rehabilitate roads, as waterproofing products and to suppress dust. The end customer of bitumen is mainly government road agencies and municipalities. This case was initiated following information received from Sasol and its subsidiary Tosas in the leniency application. In its investigation the Commission found that the oil companies entered into an agreement and engaged in collusive conduct from around 2000 until at least December 2009. The conduct included the exchange of competitively sensitive information relating to the pricing of bitumen and associated products, and the use of an agreed pricing formula to set the wholesale list selling price of bitumen. This was facilitated through meetings convened by the industry association, SABITA, as well as correspondence through SABITA and direct communication between oil companies. The Commission has filed these agreements with the Tribunal and awaits set down for confirmation as orders of the Tribunal. ENDS For more information: Molebogeng Taunyane, External Communication Coordinator (Competition Commission) at 012 394 3289/082 646 8663 / molebogengt@compcom.co.za Issued By: Nandi Mokoena PR Consultant: Competition Tribunal Cell: +27 (0) 82 399 1328 E-mail: NandisileM@live.co.za On Behalf Of: Lerato Motaung Registrar: Competition Tribunal Tel: (012) 394 3355 Cell: +27 (0) 82 556 3221 E-Mail: LeratoM@comptrib.co.za Date: 22/02/2012 12:26:01 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.

Share This Story