Johannesburg - The Competition Commission welcomed yesterday the Commission Tribunal’s confirmation of the settlement between the commission and ArcelorMittal South Africa.
The commission and ArcelorMittal reached an agreement in August in which the steel manufacturer admitted to involvement in the long steel and scrap metal cartels.
ArcelorMittal agreed to pay an administrative penalty of R1.5 billion, the highest such penalty to be imposed on a single firm in the history of competition law enforcement in South Africa.
In order to address competition concerns relating to its pricing policy, ArcelorMittal undertook that for five years it would limit its earnings before interest and tax margin to a cap of 10 percent for flat steel products sold in the country.
The company also agreed to R4.6bn capital expenditure over the next five years.
BUSINESS REPORT