Brussels, 04/06/2007 (Agence Europe) - On Friday 1 June, the Commission confirmed having sent a statement of objections to suspected participants in a cartel in the paraffin waxes industry. Paraffin waxes are mainly used for making candles.
Two of the companies concerned - Sasol Wax GmbH and Sasol Wax International AG, both located in Hamburg, Germany - are owned at 100% by the South African company, Sasol Ltd. The latter stressed in a press release that the alleged violations had begun before it acquired the German subsidiaries in 1995. It did not, however, state until when such activities continued.
Jonathan Todd, the competition commissioner's spokesman, pointed out that this can in no way be an argument for the defence, even if anti-competitive behaviour ceased before acquisition. Under constant case-law, a company is responsible for offences committed by its subsidiaries, even prior to acquisition. It is therefore the buyer's responsibility to carry out all necessary research into the background of the company that is to be acquired prior to the merger, failing which the buyer could be liable for negligence.
The companies concerned by the Commission's action now have two months in which to give their response in writing and/or orally. Only then will the Commission be able to take a decision entailing fines of up to 10% of the guilty party's turnover. According to the new directive in force since June last year, sanctions may also be increased by 100% for repeat offenders (see EUROPE 9221). (cd)