A Game Changer For Competitive M&A Transactions? Federal Court Passes Judgment On Bidding Tactics (Australia)

more+
less-

WHAT HAPPENED?

A mining consumables company was sold to a private equity firm. Seven hours later, the company was onsold at a $22 million premium to a competing Australian mining consumables company well known to the private equity firm. The Federal Court found that arrangements between the private equity firm and the ultimate buyer involved cartel conduct in breach of the Competition and Consumer Act 2010 (Cth) (CCA). The Court awarded the vendor damages equal to the premium paid by the ultimate buyer.

WHY IS THIS RELEVANT TO YOU?

Norcast S.ár.L v Bradken Limited (No 2) [2013] FCA 235 is the first case in which the new cartel provisions of the CCA have been applied and highlights the broad application of the bid rigging provisions. In this case, an Australian company and an American private equity firm were found to have breached the CCA in relation to their conduct in a sales process conducted overseas. The decision contains some important lessons for investment banks and private equity firms involved in competitive sale processes.

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Topics:  Cartels, Competition, Competitive Bidding, Investment Banks, Mining, Private Equity

Published In: Antitrust & Trade Regulation Updates, General Business Updates, Finance & Banking Updates, International Trade Updates, Mergers & Acquisitions Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© DLA Piper | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »