Star 2023-08-03

THE COMPETITION Commission wants to introduce an additional charge of price-fixing to Competition Tribunal proceedings already under way against Corobrik and SmartStone Precast. The tribunal is already investigating a charge by the commission that the two firms divided markets between them, by allocating customers in contravention of the Competition Act. However, the commission now seeks to include a price-fixing charge, after it says it uncovered new information during the discovery phase of the proceedings before the tribunal, with the primary evidence arising out of a distribution agreement and minutes of meetings giving effect to the agreement, Katlego Monareng, investigator of the commission, said in a hearing before the tribunal yesterday. The commission had applied, at the request of the tribunal, for an amendment of its initial referral of the case…

Emerging market (EM) currencies, including the rand, ran into the eye of the storm yesterday as investors dumped riskier assets for safe havens over concerns about global economic growth prospects after Fitch Ratings downgraded the US government’s top credit rating. The rand fell 0.9% to R18.47 against the US dollar yesterday, down from the previous close of R18.30/$1 and its weakest in three weeks as the downgrade of the US rattled global markets. The local currency also weakened 0.5% to R20.22 against the euro, and 0.5% to R23.48 against the pound. The MSCI index for EM stocks lost 1.9% to a one-week low, while the currency index shed 0.4% to a three-week low, according to Reuters. Mergence Investment Managers chief investment officer Brad Preston yesterday said his model, South African…

Minister for Small Business Development Stella Ndabeni-Abrahams paid tribute yesterday to Pheliswa Mthethwa for a sterling tenure as the CEO of the National Empowerment Fund (NEF). Mthethwa will be vacating the helm of the development financier when her contract ends in December, having driven the growth and institutional maturity of the entity whose legislated mandate is to grow black economic participation across South Africa. Mthethwa is leaving behind her a healthy organisation, which has approved more than R13.75 billion in investments for black entrepreneurs and R12.6bn in company investment to support emerging black industrialists, created more than 124 276 jobs and put together 8 679 public engagements on how to save and invest mainly in poor black townships, rural areas and cities. Mthethwa said, “As I serve out the…

Key priorities being targeted are the energy crisis, transport and logistics challenges Captains of industry in South Africa have resolved to collaborate with the government in tackling the country’s major bottlenecks in a bid to attract investment, create jobs and grow the economy by 3% a year. This comes after President Cyril Ramaphosa met CEOs from various sectors for an update on progress with their efforts in tackling the country's economic crisis. Leaders of Business Unity South Africa (Busa), Business for South Africa (B4SA), and Business Leadership South Africa (BLSA) yesterday said they had identified three priority areas to turn the tide against the low growth trap. They said the energy crisis, transport and logistics challenges, and crime and corruption were South Africa’s albatross to meaningful economic growth. B4SA steering…

GOLD Fields says that it is expecting its half-year profit to decline by as much as 16%, mainly due to lower gold production and higher operating costs. Gold Fields expects its headline earnings per share (Heps), the main profit measure in South Africa, to come in between $0.49 (R8.76) and $0.53 in the six months to June 30, compared with $0.58 for the same period last year. The miner’s gold production is expected to be 4% lower at 1.154 million ounces compared with the first half of 2022, while all-in sustaining costs, an industry measure, are expected to be 6% higher at $1,215 per ounce. The impact of lower gold volumes sold and higher operating costs incurred in the first half were partially offset by a higher gold price, Gold…

INVESTEC said yesterday that all regulatory clearances had been obtained for the merger of Investec Wealth & Investment UK Limited Investec (W&I UK) and Rathbones Group plc. Investec had announced the all-share combination of the two companies on April 4 this year. As a result of the regulatory clearances, completion of the deal and issue of consideration shares to Investec Group was now expected to occur on September 21. The deal completion was subject to the Financial Conduct Authority and London Stock Exchange agreeing to admit the consideration shares to trading on the exchange's main market and there being no material adverse change at either Rathbones or Investec W&I UK. “Completion will mark the beginning of a long-term strategic partnership between Investec and Rathbones that will enhance the client…