The Competition Commission (Commission) said on Tuesday that they welcomed the Competition Tribunal’s order, confirming the settlement agreement of R1 Million concluded between the Commission and DH Brothers Industries (Pty) Ltd trading as the Willowton Group.Competition . Picture : Commission Commissioner Doris Tshepe.The Competition Commission website
The Competition Commission (Commission) said on Tuesday that they welcomed the Competition Tribunal’s order, issued on 17 February 2025, confirming the settlement agreement of R1 Million concluded between the Commission and DH Brothers Industries (Pty) Ltd trading as the Willowton Group.
The Commission stated that this settlement agreement brings to an end nine years of litigation between the Commission and the Willowton Group over allegations of price fixing in respect of edible oils and baking fats. “On 02 December 2016, the Commission initiated a complaint against the Willowton Group, Wilmar Continental Edible Oils and Fats (Pty) Ltd, FR Waring Holdings (Pty) Ltd, Africa Sun Oil Refineries (Pty) Ltd, Epic Foods (Pty) Ltd, Sea Lake Investments (Pty) Ltd and Unity Food Products (Pty) Ltd (collectively, the “Respondents”), for allegedly engaging in price fixing and/or fixing of trading conditions in the market for the supply of edible oils, including baking fats and margarine in South Africa in contravention of section 4(1)(b)(i) of the Competition Act 89 of 1998, as amended.”
The Commission said they had not made any findings against the Willowton Group. “The Respondents allegedly agreed on price increases for edible oils, including baking fats and margarine as well as the timing for such increases. The conduct is alleged to have been in place as far back as 2007. This settlement follows protracted litigation between the Commission and the Willowton Group which included the setting aside of the Commission’s warrant to search and seize evidence from the premises of the Respondents and the review application to set aside the Commission’s summons and investigation.”
The Commission added that the North Gauteng High Court was still to hear the review application when the Commission and the Willowton Group agreed on the settlement. “The investigation against Wilmar Continental Edible Oils and Fats (Pty) Ltd, Africa Sun Oil Refineries (Pty) Ltd, Epic Foods (Pty) Ltd, Sea Lake Investments (Pty) Ltd and Unity Food Products (Pty) Ltd is ongoing. The Commission’s investigation against FR Waring Holdings (Pty) Ltd has since been discontinued.”
The Commission said that the Willowton Group has agreed to settle the complaint with the Commission without admission of liability and has agreed to pay a settlement amount of R1 000 000 (one million rand) and has made public interest commitments amounting to R100 000 000 (one hundred million rand) over a period of five years which includes a bursary fund of R20 000 000 (twenty million rand) over the same period.
“The bursary is intended for tertiary education students who are historically disadvantaged persons (HDPs) from underprivileged schools. At least 60% of the bursary recipients must be female students.”
The Commission added that the Willowton Group will, within 90 days from the settlement date, advertise in a national newspaper and/or electronic media as well as social media platforms the details of the bursary fund inviting applicants to submit applications within 30 days. “In addition, the Willowton Group will make donations of food products and groceries to registered non-governmental and non-profit organisations that cater for HDPs to the amount of R30 000 000 (thirty million rand) over a five-year period.”
The Commission said that non-governmental and non-profit organisations will be able to find information on how to submit applications for the donation in a national newspaper, electronic media or social media platform within the next 30 days. “Finally, the Willowton Group has committed to procure products and services to the amount of R50 000 000 (fifty million rand) from Level 1 B-BBEE service providers over the five-year period. Further, Willowton Group will withdraw its review application in the North Gauteng High Court with each party bearing its legal costs.”
The Commission added that this consent agreement concludes all proceedings between the Commission and the Willowton Group in relation to the conduct on the supply of edible oils, including baking fats and margarine in South Africa.
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