Africa's largest steel producer, ArcelorMittal South Africa, has announced that it has reached a settlement with the South African Competition Commission, finalizing all pending investigations against ArcelorMittal South Africa for its involvement in price fixing for both long steel products and scrap metal.
Accordingly, the company will pay an administrative penalty of ZAR 1.5 billion ($106.36 million), payable over five years, in instalments of no less than ZAR 300 million per year, commencing in 2017.
According to the commission’s statement, ArcelorMittal South Africa has admitted guilt in fixing prices for long steel products and scrap metal, allocating customers and sharing commercially sensitive information. However, the company has made no admission regarding the excessive pricing for flat steel products and the commission has made no finding in this regard.
The investigation was initiated in 2008 by the South African Competition Commission against long and flat steel producers in South Africa, including ArcelorMittal South Africa, regarding alleged price fixing and exclusive dealing in the domestic steel industry.