The Competition Commission has referred a case of alleged collusion against JSE-listed construction materials company Dawn, along with its subsidiaries DPI Plastics, Ubuntu Plastics and Sangio Pipes, to the Competition Tribunal for prosecution.
The commission alleged that, in April 2007, Dawn and Sangio had entered into an agreement to divide markets by allocating solid wall or regular high-density polyethylene (HDPE) piping to Sangio and corrugated HDPE piping to Dawn, DPI and Ubuntu.
The agreement was sanctioned through a shareholder agreement between Dawn and Sangio.
The commission said Dawn, DPI and Ubuntu had also agreed to procure all their South African HDPE piping requirements, other than for corrugated HDPE piping, from Sangio.