Wilmar SA, the parent company of Excella cooking oil, has agreed to a settlement of nearly R100 million with South Africa’s Competition Commission following allegations of price-fixing, the Commission announced Tuesday.
The agreement, confirmed by the Competition Tribunal, includes a R1 million penalty levied against Wilmar SA “without admission of liability,” according to the Commission. Beyond the monetary penalty, the settlement mandates significant public interest commitments and foreign direct investment.
Wilmar SA has committed to public-interest initiatives totaling R49.5 million and will invest R45 million in foreign direct investment within South Africa, the Commission stated. The specifics of these initiatives and the nature of the foreign direct investment were not immediately detailed.
The Competition Commission initiated the investigation into Wilmar SA, formerly known as Wilmar Continental Edible Oils and Fats, alleging anti-competitive practices. The settlement brings the matter to a close, although Wilmar SA maintains its position of not admitting liability.
The settlement is expected to have implications for competition within the South African cooking oil market, potentially leading to more competitive pricing for consumers. The Commission indicated that the agreement aims to address concerns about market concentration and ensure a fairer trading environment.
The Competition Tribunal’s confirmation of the consent agreement formalizes the settlement, making it legally binding on Wilmar SA. The Commission has not indicated whether further investigations into other cooking oil manufacturers are planned.
