Mittal cannot be the only bad apple. Look at the price of Copper tubing, Aluminium rims etc. It is cheaper to import basic material products then manufacturing it in SA. No wonder SA or Africa as a whole will remain for many years to come a non benefication continent and will remain in poverty by their own doing. Another, compare prices of imported cars to our local cars. Other companies should also be investigated as this Mittal issue is only the tip of the iceberg.
I suppose this stunner has been discounted in the afternoon trend, although the cost per issued share amounts only to R1,55 - say R2,00 with legal costs and behavioural matters to come. Only now will this potential libility have to be reflected in the accounts, sorry no tax benefit. Maybe some of the fine money will go to Harmony to pull them out of their misery?
Does anyone know what financial turnover Mittal in SA makes to their worldwide operations? I'm thinking it's not much, and if that's the case, then we could probably see Lakshmi Mittal pulling out of SA. Who wants to have problems with a government like this when they can make billions elsewhere and be welcomed with open arms. I believe that this has more to do with the government's steel industry agenda than anti competitiveness.
Government/Competition Authorities are correct in taking this harsh approach and sending a strong signal to other cartels. These cartels are killing the downstream industries and us as South Africans have to pay a heavy price.
Examples of Mital ripping off the local market. 1. Truck brake drums made locally using local steel cannot compete with Drums imported from Brazil, MADE FROM RSA STEEL, which are sold in RSA at the price the local manufacturer has to pay for the raw steel billet in RSA!!! How then hell can he be competitive?? 2. Steel in rolls for palisade fencing can be imported from Brazil considerably cheaper than buying the steel locally. However, THE BRAZILIAN STEEL ROLL CAME FROM RSA!!!! Mital need to get their asses kicked & I am so pleased that they have been fined!!! AT LAST!! Mital are stuffing up our local manufacturing industry.
The state should intervene to a certain extent to protect our industries.Many of these upcoming markets destroy the environment, thats how they can make it so cheap, they dont conform to environmental legislation.Thats to the detriment of us all, in the long run.