D&D Roof Insulation CC (D&D), a company involved in manufacturing and supplying glasswool products, will ask the Tribunal to confirm its settlement agreement with the Commission, in which it admits to contravening the Competition Act and agrees to pay a fine of R1.6 million.
In terms of the settlement, D&D admits to price fixing and market division. Among others, the company agrees to implement and monitor a competition law compliance programme, it undertakes to refrain from contravening the Act in future and agrees to pay a fine totalling R1 670 379.00.
The matter stems from a 2016 Commission investigation into allegations that D&D and Saint-Gobain Construction Products SA (Pty) Ltd (Saint-Gobain) agreed to fix the prices at which D&D would sell finished glasswool products as well as divide the market by allocating customers. The Commission said the companies had entered into two anti-competitive agreements to ensure that they did not compete with one another. Among others, the Commission said that the companies also agreed not to do business with one another’s customers.
The Tribunal will consider the settlement agreement between D&D and the Commission and will decide whether to make it an order of the Tribunal (whether to approve it).
Tribunal to hear proposed merger whereby Absa Bank seeks to acquire
Société Générale SA
In this proposed transaction, Absa Bank Ltd (Absa) seeks to acquire Société Générale SA (SocGen) Johannesburg branch in respect of target assets.
Absa is a wholly owned subsidiary of Absa Group Ltd (Absa Group). Absa is listed as a regional African banking and insurance business. It offers a complete range of retail, business, corporate and investment banking products. Of relevance to the proposed transaction is its derivatives clearing services.
SocGen is a public company incorporated in accordance with the laws of France. It is listed on the Euronext Paris Exchange and is not controlled by any single shareholder. SocGen controls two firms namely Société Générale South African Nominees (Pty) Ltd and Goudstad Nominees (Pty) Ltd, referred to as the “Nominee Companies”. The target assets comprise of SocGen’s custody, trustee and derivatives clearing business; its global custody services performed via foreign sub-custodians; and the Nominee Companies.
The custody services include safekeeping of securities, settlement, corporate actions tax, withholding, reporting and reconciliation. The trustee business provides trustee services to fund managers and administrators; as well as compliance with investment funds policies. The derivatives clearing services involve the clearing of trades in respect of listed derivatives. The Nominee Companies are authorised to hold securities or interest insecurities on behalf of other persons.
In its assessment of the proposed merger, the Commission was of the view that the proposed transaction is unlikely to substantially prevent or lessen competition in any relevant market. It recommended to the Tribunal that the merger be approved without conditions.
Hearing continues into alleged e-toll levy price fixing by furniture removal companies
The hearing into alleged e-toll levy price fixing by furniture removal companies continues tomorrow.
The case stems from a 2017 Commission investigation into allegations of price fixing in relation to the e-toll levy imposed on customers transporting goods on Gauteng highways.
The case involves eleven furniture removal companies and the association to which they belong. In referring the matter to the Tribunal, the Commission listed the following respondents (accused): Stuttaford Van Lines Gauteng Hub, Pickfords Removals SA, A & B Movers, Brytons Removals, Amazing Transport, Key Moves, Bayley Worldwide, Selection Cartage, Elliot Mobility, Crown Relocations, Magna Thomson and the Northern Province Professional Movers Association.
Three of the implicated companies have admitted liability and have settled with the Commission. The Tribunal approved three consent orders (settlements) in this regard: Crown Relocations settled with the Commission and agreed to pay an administrative penalty of R240 647.05; A&B Movers settled and a penalty of R208 121.90; and Key Moves settled and agreed to pay a penalty of R438 312.80.
Issued by The Competition Tribunal