By Pinky Khoabane
The Competition Commission referred Unilever South Africa and Sime Darby to the Competition Tribunal for collusion for an order declaring the two companies’ contravention of the Competition Act and a penalty equal to 10% of Unilever’s annual turnover. Johann Rupert’s Remgro has an effective 25.8% stake in Unilever SA.
Sime Darby settled with the Commission in 2016.
The Commission found that “Unilever and Sime Darby divided markets by allocating specific types of products and customers goods in the market for the manufacturing and supply of bakery and cooking products throughout South Africa”.
The Commission also found that “from at least 2004 to 2013 Unilever and Sime Darby entered into a Sale of Business agreement, which contained a clause in terms of which they agreed not to compete with each other in respect of certain pack sizes of margarine and edible oils”.
Read the background to the case and the full statement from the Commission here. http://www.compcom.co.za/wp-content/uploads/2017/01/Unilever-media-release-1.pdf
The Commission’s decision comes shortly after its decision to send 17 banks to the tribunal for rigging the Rand. The banks involved in the corruption are: Bank of America Merrill Lynch International Limited, BNP Paribas, JP Morgan Chase & Co, JP Morgan Chase Bank N.A, Investec Ltd, Stand New York Securities Inc, HSBC Bank Plc, Standard Bank Chartered Bannk, Credit Suisse Group, Standard Bank of SA, Commercerbank AG, Austalia and New Zealand Banking Group Ltd, Nomura International Plc, Macquarie Bank Limited, Absa Bank Ltd, Barclays Capital Inc, Barclays Bank plc.