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
