The Competition Commission welcomes the Tribunal's finding that two manufacturers of regular high density polyethylene (HDPE) pipes colluded between 2007 and 2012 to divide markets in South Africa.

The Commission referred the collusion case  - against Dawn Consolidated Holdings (Dawn), through its subsidiary DPI Plastics Proprietary Ltd, and Sangio Pipes Proprietary Ltd (Sangio) - to the Tribunal for adjudication in May 2015.

The Tribunal found that a shareholders’ agreement between Dawn and Sangio had the effect of dividing the market for the manufacture of regular HDPE pipes, in contravention of the Competition Act.

In its decision the Tribunal said it is apparent that Dawn undertook not to manufacture HDPE piping for as long as it or its associates held shares in Sangio. Dawn also undertook to procure all its HDPE piping from Sangio.

The Tribunal has confirmed that a hearing will be held relating to the remedies to be imposed on the companies concerned.

 

Issued by Competition Commission