Ooh! Gun jumping! It sounds so exciting; a bit outlaw, a
bit Thelma & Louise. Actually, the term refers to an M&A
transaction between competitors, where they combine or coordinate
their conduct before the deal completes. It's a bad thing. It
could land you with eight-figure fines, or even jail
time.
The ACCC has just commenced its first gun jumping prosecution.
In the firing line are Cryosite and Cell Care, competing suppliers
of cord blood and tissue banking services. The (alleged) trouble
started when Cryosite agreed to sell its assets to Cell Care.
The deal was that between signing and completion, Cryosite would
refer all customer enquiries to Cell Care. This is how the ACCC
says that the gun was jumped. The businesses also agreed that Cell
Care wouldn't deal with, or market to, Cryosite customers.
