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Sasol to pay 112 mln rand fine

December 15/2010

(iAfrica) -- The Competition Commission has reached a settlement with Sasol Polymers, a division of Sasol Chemical Industries, in which Sasol (SOL) admits that the supply agreement between it and Safripol resulted in indirect price fixing.

Sasol Polymers has agreed to pay a penalty of 112 mln rand ($ mln 16.4), which represents three percent of its 2009 total annual turnover derived from polypropylene products.

In its investigation the Commission found that Sasol and Safripol engaged in collusive conduct as a result of the implementation of the supply agreement including the operation of the pricing formula and the exchange of information relating to the pricing of polypropylene.

At the conclusion of its investigation, the Commission found that Sasol had charged excessive prices for polypropylene and propylene to its local customers in line with import parity pricing. The Commission"s findings and allegations of excessive pricing are being contested by Sasol and are still to be heard by the Tribunal.

This case was initiated in 2007 following concerns raised by the Department of Trade and Industry (dti) about polymer pricing and its negative effect on diversified growth and employment in manufacturing.

Sasol is the dominant supplier of polypropylene for its own use and that of Safripol. It is also the major supplier of polypropylene to the South African market.


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