Competition Commission v Cargill RSA (Pty) Ltd (016923) [2013] ZACT 61 (17 July 2013)

Competition Commission v Cargill RSA (Pty) Ltd (016923) [2013] ZACT 61 (17 July 2013)

The Tribunal found that Cargill RSA implemented a notifiable intermediate merger by acquiring Sugar Direct without prior notification or approval from the Competition Commission, in contravention of section 13A(3) of the Competition Act. The respondent admitted the contravention, cooperated with the investigation, and agreed to pay an administrative penalty of R100,000. The Tribunal confirmed the consent agreement as an order, including undertakings by Cargill RSA to refrain from future contraventions and to implement a compliance programme. The order concludes all proceedings between the parties in relation to this contravention.

Citation
[2013] ZACT 61
Parties
Applicant: Competition Commission; Respondent: Cargill RSA (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
17 July 2013
Case Number
016923
Procedural Posture
Consent Order / Confirmation of Settlement Agreement
Outcome
Consent agreement confirmed as an order of the Tribunal. Administrative penalty imposed. Proceedings between the parties in relation to the contravention are concluded.
Judges
A Wessels, M Mokuena, A Ndoni
Legal Topics
Failure to Notify Merger, Premature Implementation, Administrative Penalty, Consent Agreement, Merger Control
Competition Law Failure to Notify Merger Premature Implementation Administrative Penalty Consent Agreement Merger Control

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Parties

Competition Commission

Applicant

Cargill RSA (Pty) Ltd

Respondent

Procedural Posture

Consent Order / Confirmation of Settlement Agreement

Legal Issues

  1. 1 Did Cargill RSA implement a notifiable intermediate merger without prior approval from the Competition Commission, in contravention of section 13A(3) of the Competition Act?
  2. 2 Is Cargill RSA liable for an administrative penalty for failure to notify and obtain approval for the Sugar Direct transaction?
  3. 3 Should the settlement agreement between the parties be confirmed as an order of the Tribunal?

Ratio Decidendi

The Tribunal found that Cargill RSA implemented a notifiable intermediate merger by acquiring Sugar Direct without prior notification or approval from the Competition Commission, in contravention of section 13A(3) of the Competition Act. The respondent admitted the contravention, cooperated with the investigation, and agreed to pay an administrative penalty of R100,000. The Tribunal confirmed the consent agreement as an order, including undertakings by Cargill RSA to refrain from future contraventions and to implement a compliance programme. The order concludes all proceedings between the parties in relation to this contravention.

Court Disposition

Consent agreement confirmed as an order of the Tribunal. Administrative penalty imposed. Proceedings between the parties in relation to the contravention are concluded.

Orders

  • The consent agreement between the Competition Commission and Cargill RSA (Pty) Ltd is confirmed as an order of the Tribunal.
  • Cargill RSA (Pty) Ltd shall pay an administrative penalty of R100,000 to the Competition Commission within seven days of confirmation of this order.