South African Steelmaker Agrees to US$110M Fine for Price Collusion
08/23/2016 - ArcelorMittal’s South African unit has agreed to pay the equivalent of US$110 million in fines to settle accusations that it had colluded to fix steel and scrap prices, according to reports.
According to the Bloomberg news service, ArcelorMittal South Africa Ltd. admitted that it had fixed prices, allocated customers and shared commercially sensitive information on long steel products. It also admitted to fixing scrap prices, Bloomberg reported.
In addition to the fine, a record in South Africa, the company has committed to making the equivalent of US$342 million in capital expenditures and has agreed to cap margins on sales of flat steel products in South Africa during the next five years.
The penalty sends a strong message of deterrence and is an important milestone in the (South Africa Competition Commission’s) enforcement against cartels,” said Commissioner Tembinkosi Bonakele in a statement.
“This remedy is a safeguard in the event that (ArcelorMittal South Africa) were to revert to the historical prices that the commission regards as excessive,” he said.
In addition to the fine, a record in South Africa, the company has committed to making the equivalent of US$342 million in capital expenditures and has agreed to cap margins on sales of flat steel products in South Africa during the next five years.
The penalty sends a strong message of deterrence and is an important milestone in the (South Africa Competition Commission’s) enforcement against cartels,” said Commissioner Tembinkosi Bonakele in a statement.
“This remedy is a safeguard in the event that (ArcelorMittal South Africa) were to revert to the historical prices that the commission regards as excessive,” he said.
