Tribunal confirms Omnia’s R30m penalty in 2003 Nutri-Flow complaint

7th September 2018 By: Marleny Arnoldi - Deputy Editor Online

The Competition Tribunal has confirmed the settlement agreement between Omnia Fertilizer and the Competition Commission, in which the Omnia Holdings subsidiary agreed to an administrative penalty of R30-million.

The agreement stemmed from a 2003 complaint lodged by small fertilizer blender and distributor Nutri-Flow in respect of a collusion case involving Sasol, Omnia and Yara (previously known as Kynoch).  

The commission found that Sasol and its competitors, Omnia and Yara, divided markets and fixed prices. Sasol, Omnia and Yara, the main suppliers of fertiliser in South Africa, set up various committees to coordinate business practices, derive forecasted market shares and ensure balance of supply and demand.

Sasol's compliance review uncovered further collusive practices between Sasol, Omnia and Yara, including price fixing, market allocation and collusive tendering in the supply of a wide range of fertiliser products in the period 1996 to 2004, across most provinces of South Africa.

Omnia and Yara had denied the allegations of collusive conduct in continuing proceedings before the Competition Tribunal.