South African food group Pioneer Foods faces a ZAR1.6bn (US$220m) fine for its participation in the alleged fixing of wheat milling prices.
The company, which manufactures Weet-Bix cereal, is being investigated by the South African Competition Commission, over the alleged fixing of prices and allocating customers to each other.
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Pioneer Foods said it received notification on Tuesday (16 March), from the Commission recommending the penalty, which amounts to 10% of the firm’s 2009 annual group turnover.
The firm said it wants to “resolve the milling and other matters through cooperation with the Commission, and without recourse to proceedings before the Competition Tribunal, if possible”.
“The company has already met the Commission in this regard. The administrative penalty sought by the Commission in the milling matter may be adjusted lower depending on the outcome of continuing negotiations with the Commission,” Pioneer said.
The investigation has also taken in Premier Foods, Tiger Brands, Ruto Mills and Godrich Milling,
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By GlobalDataPremier Foods confirmed that it has been granted conditional immunity from prosecution. Tiger Brands is also understood to have received conditional immunity but was unavailable for comment.
