South Africa: Pioneer Forced to Cut Bread Price – Patel
South African Press Association (Johannesburg)
2 November 2010
Cape Town — Pioneer Foods will reduce the sale price of bread and flour products by a total of R160 million as part of a R1.05 billion settlement reached on Tuesday in its price-fixing cases, Economic Development Minister Ebrahim Patel said.
In a speech in the National Assembly, Patel announced that in addition to paying R445 million of penalties, the 90-year-old company also had to pay R250 million into the National Revenue Fund and to increase its planned capital expenditure of R1.2 billion over the next two years by a further R150 million.
The settlement brings an end to long-standing cases against Pioneer over its conduct in the wheat, maize, poultry and eggs market.
It is the largest settlement in the history of the Competition Commission involving a single company and is expected to be confirmed by the Competition Tribunal soon, Patel told MPs.
The penalty is also the biggest ever imposed on a [continue reading]