Firms could cut clause on price formula for selling ammonia to one another
There is a cost-saving benefit to AECI, Foskor, Omnia Fertilizers and Sasol jointly storing ammonia stock at the Ramm import terminal at Richards Bay, in which Sasol has a 25% stake
AECI, Foskor, Omnia Fertilizers and Sasol have undertaken to remove a clause in an agreement that contains a pricing formula by which they were to sell ammonia to one another, should the parties fail to agree on a purchase price. The Competition Tribunal is being asked to confirm this after the Competition Commission launched a complaint in July 2012 of price-fixing against the four firms. There is no admission of a contravention of the Competition Act, and no administrative penalty is sought. Investigations showed that there was a cost-saving benefit to the respondents jointly storing their ammonia stock at the Richards Bay Ammonium Consortium (Ramm) ammonia import terminal, in which Sasol has a 25% stake. Should the parties be unable to reach a bilateral agreement on the purchase price of ammonia, the requesting party shall be entitled to withdraw the requisite amount of ammonia from the Ramm facility on a loan basis, provided that the same amount of ammonia is returned to the fac...
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