| Mon 6 Jun 2011, 16:28 | | THEE - The Competition Commission - Media release |
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JSE
THEE
THEE - The Competition Commission - Media release
MEDIA RELEASE
06 June 2011
Commission reaches settlement agreements with grain storage and trading
companies
The Competition Commission has reached settlement agreements with four members
of the Grain Storage Industry, in which they admit to fixing the daily grain
storage tariff for South African Futures Market (SAFEX) and for the physical
grain storage market. The firms are Afgri Operations Limited (Afgri), Kaap Agri
Bedryf Limited (Kaap Agri), MGK Bedryfmaatskappy (Pty) Limited (MGK) and Suidwes
Agriculture (Pty) Limited (Suidwes). These firms are competitors in the grain
storage market.
The Commission initiated an investigation against members of the grain silo
industry on 17 March 2009, in which it was found that the storage rates for
SAFEX were agreed to by all members and shareholders of the Grain Silo Industry
which amounted to price fixing. Further, the investigation revealed that the
SAFEX storage rates were utilised as a reference point for the physical grain
storage market which amounts to indirect price fixing.
In a separate case, the Commission also reached a settlement with Rand Merchant
Bank (RMB) and NWK Limited (NWK) over allegations of dividing the grain trade
market in which they compete by allocating territories and customers. This
follows an agreement entered into by RMB and NWK in 2005 in respect of grain
owned by RMB and stored in NWK silos.
The Commission has filed application with the Tribunal for confirmation of these
settlements.
In terms of the agreements all the respondents have committed to cooperating
with the Commission in prosecuting these cases; to cease and desist from
engaging in anti-competitive conduct and to develop and implement competition
compliance programmes. All respondents have also admitted to contravening the
Competition Act. Furthermore, they will also pay cumulative administrative
penalties of R 21,175,891.99 (twenty one million one hundred and seventy five
thousand, eight hundred and ninety one ninety nine cents) administrative
penalty. Each firm will pay an administrative penalty as follows:
Suidwes - R 1 529 726.63;
MGK - R226 800;
Kaap Agri - R 1,199, 075.36;
Afgri - R15 600 000.00;
RMB - R2, 1 million; and
NWK - R 520 290.
ENDS
Further Information:
Oupa Bodibe, Manager: Advocacy & Stakeholder Relations
012 394 3267 / 082 563 6970/ oupab@compcom.co.za
Keitumetse Letebele, Head: Communications
012 394 3183/082 783 3397/ keitumetsel@compcom.co.za
Date: 06/06/2011 16:28:00 Produced by the JSE SENS Department.
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