Control Instruments - Statement in response to Competition Commission
CONTROL INSTRUMENTS GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1964/003987/06)
Share Code: CNL
ISIN: ZAE000001665
Statement in response to Competition Commission of South Africa, media release
no. 6 of 2005, 22 March 2005 and various articles in the press dated 23 March
2005.
We refer to the Competition Commission statement: `During this investigation the
Commission uncovered information suggesting other unacceptable conduct in this
industry. In this regard the Commission initiated an investigation against 15
members of the VESA Mechanical Committee and the VESA Electronic Committee
respectively for possibly colluding by agreeing within their committees in
implementing agreements to fix minimum prices for VESA electronic
alarm/immobilizer products and mechanical gear-lock products.` The statement
lists Shurlock (Pty) Limited (sic) as the fifteenth respondent. Shurlok
International (Pty) Limited (Shurlok) is a wholly owned subsidiary of Control
Instruments Group Limited (the Group).
We also refer to various articles in the press, and in particular to the article
on page 2 of the Business Day, Wednesday, 23 March 2005, `Collusion in car
security sector, says watchdog` which refers to `Sherlock (sic), part or the
Johannesburg Securities Exchange SA-listed Control Instruments`.
The Group takes these allegations extremely seriously and following an immediate
investigation and extensive enquiries amongst its senior management team, is
unable to find any evidence whatsoever of the alleged misconduct.
Upon further investigation, it appears that the entity being investigated,
namely Shurlock (Pty) Limited (sic), refers to a non-exclusive distributor of
Shurlok`s aftermarket products. This entity is not a member of the Control
Instruments Group.
For the past few years Shurlok has been conducting an extremely aggressive
campaign based on lower prices than its competitors in order to gain market
share in the electronic vehicle security aftermarket. Shurlok is not involved in
the mechanical gear-lock market.
Although Shurlok is a member of VESA, neither Shurlok, nor any employee of
Shurlok sits on either the VESA Mechanical Committee or the VESA Electronic
Committee referred to in the Competition Commission`s statement. Furthermore,
neither Shurlok, nor any employee of Shurlok plays any part in the management or
decision making process of VESA.
To date, the Competition Commission has not asked Shurlok and/or Control
Instruments Group for information relating to the allegations, nor have any
papers relating to these allegations been served on either Shurlok or the Group.
Cape Town
23 March 2005
Sponsor: Barnard Jacobs Mellet Corporate Finance (Pty) Limited
Date: 23/03/2005 05:22:48 PM
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