The Competition Tribunal on Thursday confirmed a R2.9-million settlement agreement between the Competition Commission and scrap metal dealer Ben Jacobs Metals.
The company was found guilty of engaging in price fixing and dividing up the market in the ferrous and nonferrous scrap metal sector. The fine represent 5% of its yearly turnover for the 2006 financial year.
The settlement follows an investigation initiated in August 11, 2006, emanating from a large merger filing in which the New Reclam Group intended to acquire the business of SA Metal Group and its associated company called Waste Control.
Documents submitted revealed that various arrangements entered into between New Reclam Group and Waste Control contravened the Competition Act.
Further investigation revealed contraventions by certain suppliers of ferrous and nonferrous scrap metal, which included that a series of companies entered into agreements to process and supply scrap metal, dividing up the market, fixing prices and fixing trading conditions.
The matter was then referred to the tribunal in August 2010.
The New Reclam Group has already paid a R145.97-million fine, Power Metals Recyclers a R12.77-million fine, Universal and Fine Trading R18.06-million, National Scrap Metal R17.73-million, Abeddac Metals R4.97-million, Amalgamated Metal R3.26-million and SA Metal Group R22.43-milion.