| Wed 22 Feb 2012, 12:26 | | THEE - The Competition Commission - Outcome of Competition Tribunal hearings |
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THEE
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please do not quote Nandi Mokoena or the Tribunal)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 Produced by the JSE SENS Department.
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