Group to pay R146m fine for collusion

The Competition Commission said on Sunday that recycling business the Reclamation Group had agreed to pay an "administrative penalty' of R146million for its involvement in collusion and price fixing in the ferrous and nonferrous scrap metal markets.

The Competition Commission said on Sunday that recycling business the Reclamation Group had agreed to pay an "administrative penalty' of R146million for its involvement in collusion and price fixing in the ferrous and nonferrous scrap metal markets.

The competition authority said the fine the largest settlement imposed by the commission to date represented 6percent of Reclamation's annual turnover in the affected markets.

Reclamation has agreed to pay the penalty in three instalments over 24 months. The settlement has now been referred to the Competition Tribunal, which, following a public hearing, will issue an order confirming the agreement.

Reclamation is involved in the recycling of scrap metals, glass, rubber, plastic and other materials, and is a major collector and processor of non-ferrous and ferrous metal in South Africa.

The company was found to have contravened the Competition Act by agreeing to fix prices with its competitors for the supply of ferrous metal and for the purchase of non-ferrous scrap metal.

It also entered into exclusive agreements and other arrangements with its competitors to divide markets by allocating territories and customers for the supply of metals.

The sector's uncompetitive practices were uncovered during the course of an investigation into the merger of Reclamation and SA Metal and Machinery Co, and its associated company, Waste Control. - I-Net Bridge

X