Wood panel company Sonae Arrauco has agreed to pay an administrative penalty of R46.9m after admitting to price-fixing and collusive conduct in the wood-based commodity industry, according to a statement from the Competition Commission.
The statement said Sonae Arauco would meet regularly with KAP Diversified Industrial (formally known as PG Bison between 2012 and 2016 to agree on prices and increases they would charge customers for wood-based panel products.
The statement said Sonae Arrauco accepted the penalty, while PG Bison's matter continues.
"PG Bison has since changed its name to KAP Diversified Industrial. Sonae and PG Bison are competitors in the manufacturing of wood-based panel products, that includes medium-density fibreboard and particleboard," the statement said.
As per settlement regulations, the terms of the settlement agreement remain confidential. A separate case against KAP Diversified Industrial is ongoing.