The Competition Commission is conducting a search and seizure operation at the Gauteng premises of PG Bison and Sonae Novobord as part of an investigation into alleged collusion.
PG Bison and Sonae are the only two manufacturers of particleboard and Medium Density Fibreboard (MDF) in South Africa. These are wooden products that are used in a variety of applications, including the manufacture of home and office furniture, built in cupboards, kitchen units, coffins and shop fittings.
The Commission has reasonable grounds to suspect that PG Bison and Sonae have engaged in collusive practices in contravention of the Competition Act. The search operation is conducted as part of an ongoing investigation against the two firms and with due regard to the rights of all the affected persons. During the search documents and electronic data seized will be analysed together with other information gathered to determine whether a contravention of the Competition Act has taken place.
In terms of the Competition Act, the Commission is authorised to enter and search premises and seize documents which have a bearing on an investigation
“Cartels are harmful because they result in high prices for consumers and reduce the incentive for firms to be innovative. It is for this reason that the investigation of cartels continues to be a priority for the Commission. Should this investigation uncover evidence of collusion, we will prosecute the firms involved for contravening the Competition Act,” said Competition Commissioner, Tembinkosi Bonakele.