Thousands of schools as well as SMEs will be the beneficiaries of a multi-million rand consent agreement concluded between the Competition Commission and Unilever, said the SA’s antitrust body.
SA's top anti-trust adjudicating body on Monday confirmed a nearly R400 million settlement agreement between Unilever and competition authorities over the alleged market division of margarine.
The order will see the global consumer goods company will pay a R16 million administrative penalty, while making substantial investments in procurement and supplier development that bring the total settlement to just under R400 million. The settlement agreement, in which Unilever does not admit liability, is full and final.
The case in question dates back six years when the Competition Commission, which acts as an investigating and prosecuting body, accused Unilever and Malaysian firm Sime Darby Hudson Knight of dividing markets in the edible fats and oil industry in SA between 2004 and 2012.
The case in question dates back six years when the Competition Commission, which acts as an investigating and prosecuting body, accused Unilever and Malaysian firm Sime Darby Hudson Knight of dividing markets in the edible fats and oil industry in SA between 2004 and 2012.
At the time, the commission said when Unilever sold its refinery business to Sime Darby in 2004, the parties had reached agreements, including that Unilever would not supply industrial customers with its Flora-branded edible oils. Among other agreements, Sime Darby allegedly agreed not to supply retail customers with its Crispa-branded edible oils. Sime Darby settled the matter with the commission in July 2016.
The fast-moving consumer goods giant will set up an enterprise and supplier development fund worth R40-million to offer interest-free business loans – including startup capital – to qualifying black-owned entities in the manufacturing, logistics, and wholesale industries, provided they meet Unilever’s credit and selection criteria.
Unilever has also committed to increasing local sourcing of products and services by a minimum of R340-million over a four-year period and to donate hygiene, disinfectant and oral care products worth R3-million to 18,780 public schools for the next five years.
✔️ Unilever, the producer of Dove soap, Hellmann’s mayonnaise, Marmite and Ben & Jerry’s, has a market cap of $103 billion.
✔️ Sime Darby is a South African refinery that produces pastry fats, industrial margarines, shortening and frying oils.
In welcoming the Tribunal's confirmation of the agreement, Commissioner Doris Tshepe said that this agreement will “go a long way in fostering healthy competition and driving positive change in South Africa's business landscape."
Sources: News24, Daily Maverick
