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SOL SOLBE1
SOL
SOL/SOLBE1 - Sasol Limited - Competition tribunal confirms settlement of section
4 complaint
Sasol Limited
(Incorporated in the Republic of South Africa)
(Registration number 1979/003231/06)
Sasol Ordinary Share codes: JSE : SOL NYSE : SSL
Sasol Ordinary ISIN codes: ZAE000006896 US8038663006
Sasol BEE Ordinary Share code: JSE : SOLBE1
Sasol BEE Ordinary ISIN code: ZAE000151817
("Sasol" or "the Company")
Competition tribunal confirms settlement of section 4 complaint
The Competition Tribunal ("the Tribunal") today announced that, in terms of a
consent order granted on 24 February 2011, it has confirmed the settlement
agreement ("the Settlement Agreement") reached between the Competition
Commission ("the Commission") and Sasol Polymers, a division of Sasol Chemical
Industries Limited.
The Settlement Agreement related to Sasol Polymers` existing propylene supply
contract with Safripol ("the Supply Agreement"). On 12 August 2010, the
Commission referred a complaint to the Tribunal, in which it contended that the
pricing provisions of the Supply Agreement gave raise to indirect price fixing
between Sasol Polymers and Safripol. The pricing provisions were, however,
inserted into the Supply Agreement with the knowledge of the then Competition
Board in relation to the proposed merger, in 1993, of the monomer, polymer and
certain other chemicals operations of Sasol and AECI Limited.
In Sasol Polymers` view, any contravention of the Competition Act (Act 89 of
1998), as amended, (the "Act") as a result of the Supply Agreement has its
origins in these pricing provisions rather than any intention to contravene the
Act. Given the uncertainty surrounding the legal position in relation to the
pricing formula and the interpretation of section 4(1)(b) of the Act, it was
considered prudent to settle with the Commission by accepting that the Supply
Agreement gave rise to indirect price-fixing.
As communicated in our press release on the 14th of December 2010, in terms of
this Settlement Agreement, Sasol Polymers has agreed to pay a penalty of R 111
690 000, which was subject to confirmation by the Tribunal, in full and final
settlement of the Commission`s allegations that the pricing formula gave rise to
indirect price fixing.
Sasol Polymers and Safripol have also reached agreement on the key terms that
are to govern the future monomer supply relationship between the parties, which
we consider to be fully compliant from a competition law perspective.
Norbert Behrens, the Group General Manager: Strategy and Planning at Sasol,
said, "At Sasol we are committed to comply with all legislation and hence to
resolve any competition law issues where possible. This matter is one of the
outstanding competition law issues and we are pleased that this matter has now
been resolved."
28 February 2011
Johannesburg
Issued by Sponsor: Deutsche Securities (SA) (Pty) Limited
Date: 28/02/2011 16:57:00 Produced by the JSE SENS Department.
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