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 14
th
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.