Competition Tribunal confirms settlement agreement between Sasol Nitro and Competition Commission

Wednesday, Jul 21, 2010

Subsequent to the confirmation hearing held on 14 July 2010, the Competition Tribunal today confirmed the settlement agreement between the Competition Commission of South Africa and Sasol Nitro, a division of Sasol Chemical Industries Limited, relating to allegations of abuse of dominance in its fertiliser businesses.

In terms of the confirmed settlement Sasol Nitro will restructure its fertiliser business as outlined in the announcement of the settlement agreement of 5 July 2010. No finding was made relating to abuse of dominance and accordingly no administrative penalty was sought. Nevertheless, Sasol believes the restructuring will address the Commission's concerns regarding its position within the nitrogen based fertiliser value chain.

Sasol Nitro will withdraw from certain downstream activities with increased focus on the core activities of its fertiliser business.

The confirmed settlement agreement has the effect of a full and final settlement of the alleged contraventions of excessive pricing and exclusionary practices, which are the subject of the Nutri-Flo and Profert referrals.

"This settlement agreement will bring about significant changes within Sasol Nitro and is likely to further enhance competition in the downstream fertiliser market while introducing more downstream players", Marius Brand, managing director of Sasol Nitro, said.

"Work has already begun to enable the delivery of these undertakings in a structured and orderly manner and, in the interest of our business, our people and our customers, we will work to deliver these undertakings in a timely and responsible manner", Brand said.

The confirmed settlement agreement, together with the changes to the Sasol Nitro business, will not have a material adverse financial impact on the Sasol Group.

Source: Sasol