Arcelormittal to pay R1.5bn fine after admitting to cartel behaviour
Arcelormittal has agreed to pay the administrative penalty in five annual instalments of around R300 million.
JOHANNESBURG - ArcelorMittal has agreed to pay a fine of R1.5 billion to the Competition Commission after admitting to being involved in long steel and scrap metal cartels.
The company has agreed to pay the administrative penalty in five annual instalments of around R300 million.
ArcelorMittal says that as part of the settlement, it has also set aside capital expenditure of R4.6 billion over five years.
Added to this, it will also cap at 10% the amount it earns before interest and tax with regards to flat steel products sold in this country over a 12 month period.
In April 2008, the commission initiated its investigation after several complaints.
The final deal makes provision for the company to be exempt from all other investigations currently underway.
The agreement is now set to be confirmed by the Competition Tribunal.