Sasol Limited (JSE: SOL; NYSE: SSL): Sasol Nitro Settlement and Competition Law Compliance Review

JOHANNESBURG, May 20  /PRNewswire-FirstCall/ -- The Competition Tribunal today confirmed the settlement agreement, reached between the Competition Commission of South Africa and Sasol Nitro, a division of Sasol Chemical Industries Limited, relating to its fertiliser and phosphoric acid businesses.

The confirmation of the agreement has the effect of a full and final settlement and conclusion of all proceedings between the Commission and Sasol Chemical Industries Limited relating to any alleged contraventions by Sasol Chemical Industries Limited (Sasol Nitro division) of section 4(1)(b) (prohibiting collusive conduct) of the South African Competition Act that were the subject of the Commission's investigations in respect of the Nutri-Flo matter and the phosphoric acid investigation.

The remainder of the Nutri-Flo matter and the Profert matter, which deal with allegations of abuse of dominance in the market place, form the subject-matter of continuing engagement between Sasol and the Competition Commission.

The original settlement agreement, of 4 May 2009, was concluded with the Competition Commission relating to alleged contraventions by Sasol Chemical Industries Limited (Sasol Nitro division) of section 4(1)(b) (prohibiting collusive conduct) of the South African Competition Act that were the subject of the Commission's investigations in respect of the Nutri-Flo matter and the phosphoric acid investigation. In terms of the agreement Sasol Chemical Industries Limited agreed to pay an administrative penalty of R188,01 million. This agreement was subject to confirmation by the Competition Tribunal.

In the course of Sasol's ongoing investigation into anti-competitive behaviour within its fertilizer and phosphoric acid business, additional and relevant information was uncovered last week, after intensive and repeated interviews with employees and ex-employees. Sasol immediately reported the new information to the Competition Commission.

In light of the new information, Sasol tendered an amendment to the previously announced settlement agreement, to expand the scope of the admissions that Sasol made in respect of the anti-competitive conduct in the fertilizer industry.

The Competition Commission agreed to the amendments regarding Sasol's admission of a contravention of the Act. It indicated the amendment would  result in an increase in the administrative fine, that Sasol agreed to pay in terms of the original settlement agreement, from R188,01 million to R250,68 million.

"This is another milestone in a continuing process that was started in July last year and we will not rest until we have cleaned out the cupboard entirely," Pat Davies, Chief Executive, said.

The revised administrative penalty, agreed by Sasol and the Competition Commission, was today confirmed at a sitting of the Competition Tribunal in Pretoria. The amount must be paid within 60 days of the confirmation.

"As the chief executive, I, representing Sasol, accept full responsibility for the wrongdoing and apologise, both singularly and collectively, to all those who may have been impacted by the conduct of managers and employees within the Sasol Nitro business unit in the early to mid-2000's," Davies said.

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DATASOURCE: Sasol Limited



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