Thursday, 20 May 2010
Reuters reported that South Africa may consider divestiture as a possible censure should competition authorities find that ArcelorMittal's South Africa unit had raised prices without good reason.

Mr Rob Davies Trade and Industry Minister of South Africa asked the country's Competition Commission to probe a steel price hike by the South African unit of the world's largest steel maker, which followed a price dispute by the firm and its iron ore supplier iron ore producer Kumba Iron Ore.

Mr Davies told parliament's trade and industry committee that “We look forward to the Commission's rapid investigation into ArcelorMittal's recent decision to raise steel prices notwithstanding that, as far as we can establish, they are not currently paying higher prices for iron ore.”

Mr Davies said “We reiterate our view that in the event of a finding that the Competition Act has been breached that the most vigorous remedies should be pursued.”

Referring to a previous opinion by competition authorities on ArcelorMittal South Africa's past conduct, Mr Davies said in the absence of effective alternative remedies, "divestiture may constitute the only appropriate remedy".