Sasol Limited (JSE: SOL; NYSE: SSL): Sasol Nitro Settlement and Competition Law Compliance Review
May 20 2009 - 8:32AM
PR Newswire (US)
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. Sasol Investor Relations Tel: +27 11 441
3113 / 3563 / 3321 Disclaimer - Forward looking statements In this
announcement we make certain statements that are not historical
facts and relate to analyses and other information which are based
on forecasts of future results and estimates of amounts not yet
determinable. These statements may also relate to our future
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statements regarding exchange rate fluctuations, volume growth,
increases in market share, total shareholder return and cost
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identifying such statements. By their very nature, forward-looking
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and specific, and there are risks that the predictions, forecasts,
projections and other forward-looking statements will not be
achieved. If one or more of these risks materialise, or should
underlying assumptions prove incorrect, our actual results may
differ materially from those anticipated. You should understand
that a number of important factors could cause actual results to
differ materially from the plans, objectives, expectations,
estimates and intentions expressed in such forward-looking
statements. These factors are discussed more fully in our most
recent annual report under the Securities Exchange Act of 1934 on
Form 20-F filed on 7 October 2008 and in other filings with the
United States Securities and Exchange Commission. The list of
factors discussed therein is not exhaustive; when relying on
forward-looking statements to make investment decisions, you should
carefully consider both these factors and other uncertainties and
events. Forward-looking statements apply only as of the date on
which they are made, and we do not undertake any obligation to
update or revise any of them, whether as a result of new
information, future events or otherwise. DATASOURCE: Sasol Limited
CONTACT: Sasol Investor Relations, +27-11-441-3113, or
+27-11-441-3563, or +27-11-441-3321,
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