The Competition Tribunal has confirmed a settlement agreement between the Competition Commission and Sasol Nitro, a division of Sasol Chemical Industries.
“In terms of the confirmed settlement, Sasol Nitro will restructure its fertiliser business as outlined in the announcement of the settlement agreement of July 5,” Sasol said in a statement late on Tuesday.
This followed a hearing held on July 14 related to allegations of abuse of dominance in the fertiliser business.
No finding had been 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 would withdraw from certain activities, with increased focus on 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 were the subject of the Nutri-Flo and Profert referrals.”
The settlement would bring about significant changes within Sasol Nitro and was likely to enhance competition in the fertiliser market.
“Work has already begun to enable the delivery of these undertakings in a structured and orderly manner and … we will work to deliver these undertakings in a timely and responsible manner,” Sasol Nitro’s managing director, Marius Brand, said.
The agreement, together with the changes to the Sasol Nitro business, would not have a material adverse financial impact on the Sasol group. — Sapa