The US DoJ reaches $5 million settlement with companies after allegations of premerger coordination (Flakeboard America / SierraPine)

U.S. Premerger Coordination Allegations Settled for $5 Million in Civil Penalties, Disgorgement* The dangers of prematurely exercising operational control over an acquisition target, or at least appearing to operate organizational control, are highlighted by a Department of Justice Antitrust Division action announced yesterday against two particleboard suppliers that recently dropped their planned combination. Just five weeks ago, Flakeboard America Ltd. abandoned its proposed acquisition of rival SierraPine in the face of the government’s antitrust concerns. Now, the companies have agreed to pay millions to settle allegations that they engaged in premerger coordination, also known as “gun jumping,” in violation of both Sec. 7A of the Clayton Act and Sec. 1 of the Sherman Act.

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  • Wolters Kluwer (Riverwoods)

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Jeffrey May, The US DoJ reaches $5 million settlement with companies after allegations of premerger coordination (Flakeboard America / SierraPine), 7 November 2014, e-Competitions November 2014, Art. N° 70008

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