DSTV Media Sales with further conditions making the accumulative penalty of R80 262 599 - hearing 28 June

Tribunal to confirm Bothaville Milling R4 million settlement agreement

The Competition Tribunal is to decide whether to confirm R R4 211 385.90 settlement agreement involving Bothaville Milling for its role in price fixing.

Bothaville and other milling companies held meetings and had telephone discussions where they agreed to fix the price of milled wheat products, create uniform price lists, and fix the date when prices should be increased.

The commission said the collusive conduct, which is in contravention of section 4 of the Competition Act, took place between 1999 and 2007.

In terms of the settlement agreement Bothaville Milling undertakes the following:

It confirms that the mentioned conduct has ceased; it will develop a compliance law programme and provide a copy to the Commission within 60 days of the confirmation of the consent agreement. The settlement agreement is 5% of its annual turnover for the financial year end February 2007.

         Other settlement concluded in this matter are:

  • Blinkwater Mills- R10 112 504.20 (5% of annual turnover for 2007)
  • Keystone Milling- R6 730 349 (3% annual turnover for 2009)
  • Carolina Rollermeule, R 4 417 547.00 (5% of annual turnover for 2009)

The Commission has also concluded settlement agreements with Foodcorp, which paid an administrative penalty fee of R88.5m, Pioneer Foods which paid a penalty of R500m. Tiger Brands and Premier Foods have been granted conditional immunity in terms of the Commission’s leniency policy.

The complaint was first initiated when the Commission received a corporate leniency application from Premier Foods in 2007, which was corroborated by a further leniency application filed by Tiger Brands in the same year. The Commission subsequently conducted its probe into collusive conduct in this sector.

 

Tribunal is asked to confirm R22m settlement with DSTV Media Sales with further conditions making the accumulative penalty R80 262 599

DSTV Media Sales (DMS) has agreed, in a consent agreement, to pay an administrative penalty of R22 262 599.00 for colluding with other media houses on pricing, discounts and payment terms for advertising space. The Commission is asking that the Tribunal confirm the agreement.

The Commission in the settlement agreement submitted to the Tribunal alleges that media owners reached an agreement to offer similar discounts and payment terms to advertising agencies. Accredited agencies were given a 16.5% discount on payments made within 45 days while non-accredited agencies received a 15% discount.

In terms of the imposed penalty, excluding the administrative penalty:

  • DMS undertakes to provide 25% in bonus airtime for every Rand of airtime by all Qualifying Small Agencies. The airtime shall be scheduled at the discretion of DMS. DMS will offer these terms for a period of three years from the date of confirmation of this consent agreement, subject to a total annual cap of R50 000 000.
  • DMS undertakes to contribute R8 000 000 to the Economic Development Fund over three years from the date of confirmation of this consent agreement to enable  the development of Qualifying Beneficiaries.

 

WBHO Construction and Faku Family Enterprises wish to acquire Grindrod Rail Construction (SA) (Pty) Ltd and Grindrod Rail Construction Company (Pty) Ltd

WBHO Construction and the Faku Family Enterprise wish to acquire Grindrod Rail Construction (Pty) Ltd (GRC SA) and Grindrod Rail Construction Company (Pty) Ltd (GRCC) from Grindrod Holdings (South Africa) (Pty) Ltd (Grindrod Holdings). The Competition Commission has recommended that the merger be approved without conditions.

The relevant market in this merger is the provision of civil engineering services for the rail sector.

WBHO Construction is a wholly-owned subsidiary of Wilson Bayley-Ovcon Limited (WBHO). WBHO is active in the construction industry where it offers services in building and civil engineering, roads and earthworks, projects and construction materials.

The Faku Family Enterprise (“FFE”) is an investment holding company with subsidiaries active in the construction, property, coal and petrochemicals and related logistics services sectors. It does not provide civil engineering for the rail construction sector.

Grindrod Rail Construction (SA) is a wholly-owned subsidiary of Grindrod Rail Construction Company and which is wholly owned by Grindrod Holdinngs GRC SA’s services include construction, rehabilitation, electrification and maintenance of rail networks. Within the public sector, GRC SA engages with local and international large industrial or mining clients that require physical rail infrastructure and associated civil works for mines or manufacturing plants.

GRCC is a wholly-owned subsidiary of Grindrod Holdings and is an investment holding firm which is active through its subsidiaries.

 

MIC Investment Holdings wishes to acquire Metrofile

The Commission has recommended to the Tribunal that the proposed large merger be approved, without conditions, whereby MIC Investment Holdings (Pty) Ltd (MIC) intends to acquire Metrofile Holdings Limited (Metrofile).

MIC is an investment company and is a wholly owned subsidiary of the Mineworkers Investment Company; Metrofile handles physical and digital information and record management. The Tribunal is to consider the merger.

The Mineworkers Investment Company, which owns MIC, is controlled by the Mineworkers Investment Trust (MIT) and is referred to as the MIC Group. The MIC Group invests in cash generative assets that allow it to pay a dividend to MIT to fund social upliftment programs for members of the National Union of Mineworkers.

The Metrofile Group provides services and products which include records archiving, storage, retrieval and destruction; conversion of paper and analogue records to digital formats; and storage of backup media. 

The Commission has recommended that the merger be approved without conditions.

Issued by:

Chantelle Benjamin

Communications: Competition Tribunal   

Tel (012)394 1383                                     

Cell: +27 (0) 73 007 5603  

Twitter: @comptrib                                       

E-Mail: chantelleb@comptrib.co.za

 

On Behalf Of:

Lerato Motaung                                                   

Registrar: Competition Tribunal                                        

Tel: (012) 394 3355                                             

Cell: +27 (0) 82 556 3221                                              

E-Mail: LeratoM@comptrib.co.za