Bundeskartellamt Approves USD 10.6bn Siemens Deal
Germany's Competition Authority has approved Siemens' acquisition of American software company Altair Engineering. Both companies provide product lifecycle management software and computer-aided engineering solutions, Siemens being a market-leader in the former, with Altair particularly well-known for its physics-based simulation solutions.
New Australian Digital Competition Regime
The Australian government has proposed a new digital competition framework to address concerns regarding the dominance of large platforms and prevent anti-competitive behaviour upfront. While the Australian Competition and Consumer Commission (ACCC) will play a key role there will be some ministerial involvement. The initial focus will be on app marketplaces and ad tech services with potential expansion to social media.
UK Watchdog Conditionally Approves Landmark Merger
The Competition and Markets Authority (CMA) has conditionally approved the merger of Vodafone and Three merger by requiring an GPB 11 billion investment in an eight-year upgrade of the UK's 5G network. It has also imposed conditions such as price caps on certain mobile tariffs and protections for smaller mobile network operators to address anti-competitive concerns. The deal, subject to these conditions, will result in creation of the UK's largest mobile network operator.
Big Deal in Canadian Banking
Canada's Big Five banks await the possibility of an additional member after the Canadian Ministry of Finance approved National Bank of Canada's ("NBC") CAD 5 billion acquisition of Canadian Western Bank ("CWB"). The merger, which received final regulatory clearance after approval from both the Office of the Superintendent of Financial Institutions (OSFI) and the Competition Bureau, is expected to close by February 3, 2025. NBC controls assets of CAD 462 billion; CWB specializes in financial services to businesses.
Big French Fine for Household Brands
The French Competition Authority has imposed a fine of EUR 611 million on some of Europe's best-known household appliance brands for engaging in anticompetitive vertical price-fixing agreements. It was found that the companies, including Candy Hoover, Electrolux, LG and Smeg, entered into agreements with major distributors to artificially inflate product prices preventing consumers benefitting from lower prices and excluding online distributors. Ten of the twelve companies settled with only SEB and Boulanger declining to do so. Other companies fined include LG, Whirlpool and Miele.
Tyson Foods to Settle USD 400m Class Action
Tyson Foods and eight fellow poultry processors will pay USD 180 million as part settlement of a lawsuit alleging they colluded to maintain low employee wages. Tyson and its subsidiary Keystone Foods (USD 115.5 million), Koch Foods (USD 18.5 million), Foster Farms (USD 13.3 million) and Butterball (USD 8.5 million) contribute the lion's share with Perdue Farms, Cargill and Sanderson, among others, having also settled similar claims. Plaintiffs have requested preliminary approval for the settlements from the U.S. District Court for the District of Maryland. The total amount settled in this August 2019 class action lawsuit now amounts to USD 400 million according to court filings.
Mexico Abolishes Key Regulatory Authorities
A December 20 decree has abolished several regulatory authorities, including the national regulators for competition (COFECE), telecommunications (IFT), energy (CRE) and hydrocarbons (CNH), as part of a bill approved by the Mexican Congress in November. While the decree did not specify who will take over the functions of the abolished authorities, a February 2024 statement from former President Andrés Manuel López Obrador suggests that the functions and personnel of the above named regulators will be integrated as offices in their respective Ministerial counterparts.
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