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Sunday, 28 August 2016

ECA cries foul on fertilizer market collusion, says Misr Cement violated M&A regulations

Two “major” companies have been colluding in the superphosphate fertilizer market, the Egyptian Competition Authority (ECA) announced in a statement on Thursday, flagging four different violations. The ECA did not name the companies charged, but said it obtained proof that the two companies have colluded to fix selling prices domestically and also limited distribution nationwide to preserve their respective market shares. This prevented production-driven price decreases from reaching the consumer, the ECA alleges. ECA chief Mona El Garf told Al Mal that the two companies will be given 15 days to reach a settlement or be referred to the Prosecutor General’s Office for further investigation and potential charges. The two companies are allegedly Kafr El Zayat Pesticides and Abu Zaabal Company for Fertilizers, according to a later piece published in Al Mal.

Four cement distribution companies are also facing charges of engaging in anti-competitive practices, the newspaper alleges. Separately, the ECA has referred the Misr Qena Cement Company to prosecution for allegedly failing to notify it of its acquisition of ASEC Minya Cement and ASEC Ready Mix, Al Ahram reported.

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