THEE - Competition Commission refers findings of mesh wire cartel to Tribunal
JSE
THEE
THEE - Competition Commission refers findings of mesh wire cartel to Tribunal
The Competition Commission has referred its findings of a price fixing and
market allocation cartel in the manufacturing and supply of reinforcing mesh
products market involving Aveng (Africa) Limited (trading as Steeldale Mesh),
Capital Africa Steel (Pty) Ltd (trading as Reinforcing & Mesh Solutions) and
Vulcania Reinforcing (Pty) Ltd ("Vulcania") and BRC Mesh Reinforcing (Pty) Ltd
("BRC"), a subsidiary of Murray and Roberts Steel Group, to the Tribunal for
adjudication.
The Commission initiated an investigation into this cartel activity following
information received from a leniency application by Murray and Roberts Steel
(Pty) Ltd on behalf of its subsidiary, BRC, on 26 September 2008. In the
application Murray and Roberts admitted to participating in the cartel and was
grated conditional immunity from prosecution provided that it cooperates with
the Commission in the investigation and prosecution of the cartel. The
Commission has asked the Tribunal to impose an administrative penalty of 10% on
each of the firms involved, except Murray and Roberts who has been granted
conditional immunity.
In its investigation the Commission found that the respondents contravened the
Competition Act in the period between 2001 and 2008 by engaging in price-fixing
and market allocation. This was done through monthly formal meetings under the
auspices of South African Fabric Reinforcing Association ("SAFRA"). After the
respondents were advised that their conduct was a contravention of the law the
informal meetings were largely replaced by informal meetings which were held in
restaurants, golf courses and pubs.
In these meetings the four respondents agreed to fix the selling price and
discounts for reinforcing mesh products, and to not sell to or target each
other`s customers.
All of the respondents compete in the reinforcing mesh market. They are also
suppliers and manufacturers of products such as hard drawn wire, welded steel
mesh for construction reinforcing and related products; fencing products and
other wire related products.
ENDS
Further info:
Keitumetse Letebele, HOD: Communications
012 394 3183/ 082 783 3397/ keitumetsel@compcom.co.za
Date: 03/12/2009 14:00:01 Produced by the JSE SENS Department.
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