The Competition Commission has reached a settlement with Wilmar over price-fixing and market division allegations in the edible oils market.
The Competition Commission and Wilmar SA have agreed on a settlement, bringing an end to nearly a decade of litigation over alleged price-fixing and market division in the edible oils and baking fats sector.
In terms of the agreement, Wilmar SA — the local subsidiary of Singapore-based agribusiness Wilmar — will make public-interest and other investments of nearly R100 million.
The Competition Commission said on Tuesday that Wilmar SA would pay a R1 million settlement “without admission of liability”. The group, whose brands include Excella cooking oil, has also committed to public-interest initiatives totalling R49.5 million and to R45 million in foreign direct investment.
This follows a related settlement early last year with Willowton, which also owns the Sunshine D and Wooden Spoon spreads brands.
In terms of that agreement, Willowton agreed to pay a settlement of R1 million, along with a further R100 million in public interest commitments over the next five years. There was no admission of liability by Willowton, which denied it had contravened the Competition Act, the watchdog body said at the time.
The Commission said it welcomed the Competition Tribunal's order, issued on 18 February, confirming the settlement between the Commission and Wilmar SA.
It said the settlement followed similar agreements with Willowton and Sea Lake in this matter.
The Commission added that its investigation into African Sun Oil Refineries and Epic Foods was “ongoing”.
Among its public interest commitments, Wilmar has agreed to establish a R25 million bursary fund over five years to support historically disadvantaged students pursuing tertiary education in the food and agri-processing field. The company will also spend R14.5 million on school infrastructure development.
Among the foreign direct investment commitments is the group's plan to establish a packing plant in Durban, which will be used to package its own products.
The Commission said the confirmation of the settlement agreement concludes all proceedings between it and Wilmar regarding the matter.
Source: News24
