The Competition Tribunal has today confirmed, as an order of the Tribunal, a consent agreement between the Competition Commission and Wilmar SA (Pty) Ltd (formerly Wilmar Continental Edible Oils and Fats (Pty) Ltd).

Although Wilmar does not admit that it contravened section 4(1)(b)(i) and/or (ii) of the Competition Act, it nevertheless agreed to enter into a consent agreement. In terms of the consent agreement:

  • Wilmar has agreed to pay a settlement amount of R1 000 000.
  • In addition, Wilmar has undertaken a range of public interest and compliance commitments. These include an investment of R49.5 million over five years in the following public interest initiatives:

Education initiative

The Education Initiative will comprise a combination of learnerships, apprenticeships and bursaries to Historically Disadvantaged Persons and/or otherwise underprivileged candidates. Funding under the Education Initiative shall be limited to post-school education and training and shall not include primary education.

School infrastructure development

A specified amount shall be specifically allocated for: (i) the eradication of pit latrines at rural schools; and (ii) other school infrastructure projects, including the construction of new schools and the refurbishment and re-equipment of existing schools.

Enterprise and Supplier Development Fund

The Enterprise and Supplier Development Fund shall be applied towards business incubation initiatives, including the provision of capital to support the establishment and expansion of small, medium and micro enterprises and businesses. Beneficiaries of the Enterprise and Supplier Development Fund shall be integrated into Wilmar's supply chain and shall receive a guaranteed commercial engagement with Wilmar for a certain specified minimum period. In addition to financial support, the initiative shall provide a

comprehensive suite of developmental interventions, including but not limited to structured mentorship, regulatory compliance training, and IT enablement.

Foreign direct investment

In addition, Wilmar has committed to foreign direct investment, inter alia, establishing a new rice packaging plant.

Future conduct

In terms of the consent agreement, Wilmar agrees and undertakes not to engage in any anti-competitive conduct that is in contravention of the Act. It will also develop, implement and monitor a competition law compliance programme as part of its corporate governance policy, which is designed to ensure that all employees, management and other functionaries do not engage in conduct that is in contravention of the Act.

Background

In December 2016, the Commission initiated a complaint against Wilmar and other firms for alleged price fixing and/or fixing of trading conditions in contravention of section 4(1)(b)(i) of the Act. The initiation in this matter was later amended to include the allegation of market division against Wilmar and another firm under section 4(1)(b)(ii) of the Act.

The Commission and Wilmar have agreed that settlement is a pragmatic resolution to their longstanding disputes.