Corobrik charged for price fixing after probe

Share your Subscriber Article
You have 5 articles to share every month. Send this story to a friend!

Cape Town - Corobrik and five other brick makers have been charged for price fixing and division of markets, the Competition Commission announced in a statement on Wednesday.

Corobrik, which is a well-known manufacturer and supplier of bricks, pavers including clay and concrete blocks in South Africa, has been under investigation for contravening the Competition Act.

The Commission in April this year also probed Era Bricks, Eston Brick and Tile, De Hoop Brickfields, Clay Industry and Kopano Brickworks for contravening the Competition Act, by engaging in price fixing and division of markets in the manufacturing and supply of bricks, pavers and blocks of clay and concrete.

READ: Pipes manufacturers colluded - Competition Tribunal

"Corobrik entered into separate bilateral agreements with each of the above companies in terms of which they agreed to divide the market by allocating specific products and/or customers in contravention of section 4(1)(b) (ii) of the Competition Act," said the Commission.

In addition, Corobrik and Era Bricks agreed to fix prices at which they sold bricks, pavers and blocks in contravention of section 4(1)(b)(i).

The Commission revealed that Corobrik and Era Bricks concluded a Memorandum of Agreement that Era Bricks would not supply its products directly to customers in competition with Corobrik, but instead would sell directly to Corobrik who would then sell to customers in the open market.

It also found that Era Bricks would not manufacture or sell any bricks other than the types it was manufacturing and selling to Corobrik.

There’s more to this story
Subscribe to News24 and get access to our exclusive journalism and features today.
Subscribe
Already a subscriber? Sign in
Rand - Dollar
14.04
+0.5%
Rand - Pound
19.91
+0.1%
Rand - Euro
17.11
+0.1%
Rand - Aus dollar
10.95
-0.0%
Rand - Yen
0.13
+0.3%
Gold
1,869.43
+0.1%
Silver
28.54
+1.3%
Palladium
2,920.45
+0.6%
Platinum
1,244.50
+0.0%
Brent Crude
69.46
+1.1%
Top 40
61,944
+1.2%
All Share
67,990
+1.2%
Resource 10
72,340
+2.4%
Industrial 25
84,320
+0.4%
Financial 15
12,709
+0.8%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Results
Yes, and I've gotten it.
21% - 1473 votes
No, I did not.
52% - 3662 votes
My landlord refused
27% - 1946 votes
Vote