JUST IN: Dangote Drags BUA Foods To Anti-Competition Commission

Dangote Sugar Refinery (DSR) has dragged BUA foods to anti-competition Commission over price-fixing allegation.Information Guide Nigeria

According to RIPPLES NIGERIA, BUA has accused Dangote Sugar Refinery of creating artificial sugar scarcity in a bid to increase price, an action DSR was alleged to have taken with rival, Flour Mill Nigeria (FMN).

This allegation which was made by BUA Foods on Monday stated that the market had contacted the company to find out if it was partaking in the artificial sugar scarcity.

RIPPLES NIGERIA reports that BUA Foods said Dangote Sugar and FMN halted distribution of their products due to the coming Muslim period, Ramadan.

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Recall that last year, Rabiu Abdulsamad’s company accused Dangote Sugar weeks going into the Ramadan period.

However, just like its denial in 2021, DSR is also distancing itself from allegation known as price-fixing.

In a statement released on Thursday to the Nigerian Exchange Group, Dangote Sugar said “In compliance with the requirements of the Rulebook of the Nigerian Exchange Limited, DSR wishes to strongly refute the allegations and assertions in their entirety as these false allegations may mislead the market and may give an undue competitive edge to BUA.”

The company, owned by Aliko Dangote, also refuted blackmailing the government to review the denial of allocations to FMN, due to compliance issues. DSR expressed concerns on the constant accusations from BUA Foods, and has reported the firm to market regulator.

The statement further reads: “We believe this behaviour exhibited by BUA is worrisome and appears to conflict with the anti-competition rules. Last year, just before the commencement of Ramadan (the Islamic holy month of fasting), BUA made similar false allegations against the Company that it was engaged in ‘price-fixing’ and not honestly pursuing the Backward Integration Project.

RIPPLES NIGERIA reports that Dangote Sugar had made a formal complaint to the Anti-Competition Commission on February 14, 2022.Jamb Result 

Speaking on the formal complaint, DSR stated, “we await their actions to address the situation“.

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