Fri, 07 Aug 2009 12:00a.m.
Global packaging company Amcor Ltd has avoided a courtroom showdown over whether it colluded to fix cardboard box prices, after reaching a confidential settlement with a major customer, confectioner and beverage maker, Cadbury.
Cadbury had initiated a $A235.8 million claim against Amcor, claiming the packaging 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.
In a statement on Friday, Amcor said the two companies had reached an out-of-court settlement.
"Amcor is pleased to announce today that it has reached final agreement in relation to its Federal Court dispute with Cadbury in relation to Cadbury's allegations of anti-competitive conduct in the period up to December 2004," 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 remains a key packaging customer of Amcor, as Amcor has also entered into long term supply arrangements with Cadbury for Cadbury's carton and corrugated box requirements in Australia and New Zealand."
NZPA