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Update on Competition Commission investigations
Mpact Limited
(Incorporated in the Republic of South Africa)
(Registration number 2004/025229/06)
JSE share code: MPT ISIN: ZAE000156501
("Mpact Limited" or "the Company")
Update on Competition Commission investigations
Mpact notes the media statement issued by the Competition
Commission (the Commission) yesterday regarding the conclusion
of a consent agreement with New Era Packaging regarding historic
investigations initiated by the Commission pertaining to alleged
anti-competitive conduct between Mpact and New Era.
As previously advised, Mpact was a respondent in alleged
historic anti-competitive conduct involving New Era that was
initiated by the Commission on 16 May 2016. The investigation
in relation to corrugated packaging concerned interactions
between a former employee of Mpact and a representative of New
Era in its capacity as a competitor prior to 2016.
The investigation in relation to recycling, emanated from the
initial investigation by the Commission, and related to historic
conduct that arose from a shortage of supply of recyclable
material in the market required for the production of paper. In
order to ensure Mpact was able to continue to supply paper to
its customers, including New Era, for a relatively short period
New Era facilitated the supply of baled recyclable material to
Mpact from one of its significant suppliers of such material.
The conduct in question related to certain communications
between the parties in the context of a request from the supplier
to change the price the supplier had agreed.
As soon as the conduct was brought to the attention of the Board
in 2016, the Board immediately engaged with the Commission and
has been co-operating with the Commission since then in relation
to its investigations. In so doing, the Board acted in a
diligent manner and in the best interests of the Company. Mpact
has co-operated with the Commission, and dealt with the issues
identified transparently through applying for corporate leniency
in respect of the Commission's investigations referred to above.
Pursuant to its leniency policy, the Commission is not seeking
the imposition of a penalty against Mpact in the complaints,
which have been settled by New Era without any admission of
liability. Mpact is pleased to note that, as the Commission has
settled with New Era, this historic matter has now been
finalised.
As previously notified on SENS on 13 February 2020, Mpact and
the Commission have also concluded a settlement agreement
relating to Mpact's historic acquisition of minority interests
in certain sheet plants. These minority interests were acquired
by Mpact's predecessor-in-title, prior to Mpact's listing on the
JSE in 2011, and were not notified to the Competition Authorities
at the time of the acquisitions. Mpact drew the historic non-
notifications to the Competition Commission's attention and
notified the acquisitions in 2019 as well as informing it of the
fact that Mpact had engaged with the sheet plants on the basis
that they formed part of the Mpact Group of companies. Mpact
subsequently resolved all matters relating to the minority
shareholdings which it held in these entities with the
Commission through the comprehensive settlement amounting to R7
million.
Mpact seeks to uphold the highest standards of governance and
believes that it has acted ethically, diligently and
transparently, in the best interests of all stakeholders
throughout the Commission's investigation. The Group has in
place numerous measures to ensure good corporate governance
across all its operations.
Melrose Arch
25 July 2024
Sponsor
The Standard Bank of South Africa Limited
Date: 25-07-2024 10:12:00
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