MELBOURNE: Global packaging company Amcor has avoided a courtroom showdown over whether it colluded to fix cardboard box prices, after reaching a confidential settlement with confectioner and beverage maker Cadbury.
Cadbury had initiated a A$235.8 million ($294 million) claim against Amcor, claiming the company engaged in anti-competitive behaviour with box-making peer Visy, to set prices for boxes, cans and PET products.
Cadbury, one of Amcor's biggest customers, launched its federal court action in 2006. The action was adjourned on Wednesday, shortly before it was due to go to trial.
Yesterday Amcor said the two companies had reached an out-of-court settlement.
"Amcor is pleased to announce that it has reached final agreement in relation to its federal court dispute with Cadbury," Amcor said.
"The terms of the settlement are confidential between the parties but do not have any material impact on Amcor's financial position.
Cadbury and Amcor had also entered into long-term supply arrangements.
Managing principal for Maurice Blackburn lawyers Ben Slade said it was unfortunate the case had not gone to trial, but it could be good news for the hundreds of large customers who claim Amcor and Visy engaged in price fixing.
Cadbury was not suing Visy.
"The fact of the case settling gives us some hope that Amcor and Visy will see a way through to opening discussions with us," Slade said.
"We have no doubt at all that there is substantial compensation due to our clients and group members."
Slade said about 350 customers of the packaging companies had already settled their claims out of court.
- AAP
Amcor, Cadbury settle over price-fixing claim
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