ArcelorMittal fine to be paid in tranches
The Competition Tribunal has confirmed that ArcelorMittal SA can pay off an initial R300m annual penalty in tranches of R100m, in the first year of five years paying off a R1.5bn fine imposed for market fixing. A Business Day report says the first payment due in November 2017 has already been paid, with subsequent payments due to be paid in April 2018 and July 2018.
The amended agreement takes pressure off the balance sheet of the company, which posted a loss of R5.1bn for the year to December 2017. ‘Taking into account the company’s financial position resulting largely from the tough trading conditions in the global and local steel industries, the Competition Commission agreed to divide ArcelorMittal’s anticipated 2017 payment into three separate tranches,’ the company said.
The report notes it has admitted it had engaged in collusion with steel companies Cisco, Scaw and Cape Gate by fixing prices and discounts, allocating customers and sharing sensitive information in the market for the manufacture of long steel products. It had also fixed the price of scrap metal with Columbus Steel, Cape Gate and Scaw.
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