The US Department of Justice agrees to refer the product market definition to binding arbitration (Aleris / Novelis)

For the first time in history, DOJ's Antitrust Division plans to use binding arbitration to resolve an important element of a merger challenge. As part of its lawsuit to block the proposed acquisition of Aleris Corporation by Novelis Inc., the parties and DOJ agreed to resolve the issue of market definition through binding arbitration, "should certain conditions be triggered." The specific triggering events, however, have not been disclosed publicly. DOJ implemented the relevant order and regulations for Alternative Dispute Resolution ("ADR") in the mid-1990s. This marks the first time DOJ has used its arbitration authority. Novelis, a Xat-rolled aluminum producer, entered into a definitive agreement to acquire Aleris, a relatively new producer of Xat-rolled aluminum, in July 2018.

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Authors

  • Jones Day (Washington DC)
  • Jones Day (Washington DC)
  • Jones Day (New York)

Quotation

Ryan C. Thomas, John M. Majoras, Keira Campbell, The US Department of Justice agrees to refer the product market definition to binding arbitration (Aleris / Novelis), 4 September 2019, e-Competitions Bulletin October 2019, Art. N° 91834

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