ACCC's Oreo showdown

G’day.

Welcome to Point Blank.

Today’s brief:

• Woolies tells the ACCC that the $5 Oreo is evidence that its discounts are legit.

• Maurice Blackburn has secured a handsome payout in Uber class action.

• Aussie lawyers are hot property in the UK with a reputation for being more commercial and client-facing.

Enjoy your morning coffee ☕️

 💼 Practice Points

• Section 1322 of the Corporations Act 2001 is a remedial provision allowing Courts to fix procedural issues under the Act, often used to validate corporate actions affected by minor governance errors. The recent case of Global Lithium Resources reminds us of the Court’s broad powers under section 1322. In light of potential breaches of the Foreign Acquisitions and Takeovers Act, the Court extended the deadline for Global Lithium's AGM and EGM to allow the Commonwealth Treasury enough time to investigate the issues. Justice Hill ruled that extending the deadlines until 14 February 2025 struck a fair balance between Global Lithium’s concerns and the rights of its members.

• In a move that could reshape the Australian economy, Commonwealth, state, and territory treasurers have signed a landmark agreement to overhaul the National Competition Policy (NCP) over the next decade. The first batch of reforms is all about easing the cost of living and cutting regulatory red tape for consumers, workers, and businesses.

• The Federal Government has outlined its next steps for tackling modern slavery in its response to a statutory review of the Modern Slavery Act 2018 (Cth). The Report also provides its responses to the 30 recommendations contained in the review.

🏘️ Word on the Street 

• In the cutthroat London legal market, Aussie lawyers are still in high demand, and for good reason. According to Anthony Matthews, founder of Matthews and Carter Associates, Australian lawyers stand out for their higher levels of responsibility compared to their UK counterparts. Unlike the siloed nature of UK firms, Aussie lawyers also work across multiple areas, which gives London firms the added benefit of candidates with diverse skillset. Australian lawyers are known for being commercial, client-facing, and excellent at winning business. Matthews says, “In London, business is more traditional, and it isn’t as competitive as the Australian market. Associates in Australia must be prepared that winning business is part of the job”.

• Wotton + Kearney has just boosted its Sydney insurance team with the arrival of Clyde & Co partner Jacques Jacobs and his team of six. Jacobs brings expertise in PI, directors & officers insurance, plus a keen focus on ESG and cyber risks.

• White & Case promotes 2 Australian lawyers as part of its 52 global promotions. Donovan Ang and Matt Sercombe have both been named counsel in the firm’s project development and finance practice, based in Melbourne.

📢 Talking Points

• Staff turnover in S&P 500 companies has jumped 14% on average since the return-to-office mandates kicked in. Who’s heading for the exit? Mostly women, senior employees, and highly skilled workers.

• The Australian Judicial Officers Association is sounding the alarm, calling for "urgent and sustained investment" in the country's judicial system. With courts overloaded and underfunded, the Association warns that these pressure points threaten judicial independence.

• Treasury Secretary Steven Kennedy is backing the ACCC and ASIC in their push to end a 13-year freeze on barristers' pay for government work. Both regulators argue that the pay cap—which limits government rates to just one-fifth of what barristers earn in the private sector—creates an uneven legal playing field and holds back effective law enforcement.

• President Biden has pardoned his son Hunter, raising eyebrows—and questions. While he deserves a #1 Dad of the Year mug for Christmas, the move undermines his own stated commitment to judicial independence and equality under the law. Critics say it tarnishes the moral high ground Biden once claimed, fueling cynicism about political hypocrisy and setting a troubling precedent ahead of expected Trump pardons for January 6^th convictions.

🏦 The Treasury

🤝 Deal Room

• We’ve all paid a visit to Timezone. Well, global buyout funds like Blackstone, Carlyle, and CVC are now eyeing its owner, the Entertainment and Education Group. But the current owner, Quadrant Private Equity, isn't ready to cash out just yet—they’re holding on to ride the wave of growing demand in India.

• After Northern Star’s play for De Grey, the big question is: what will Gold Road do now with its 17.3% stake? Sources say Northern Star didn’t even give Gold Road a heads-up before making its move. Now, Gold Road might be looking to shop around its stake, which is big enough to block the deal. It may sell to potential suitors like Agnico Eagle, which may lob a rival offer, or opt to block the deal. De Grey climbed 29.61% on the announcement of the bid.

• Japanese suitor Sojitz is gearing up to assemble a bidder consortium to make a non-binding indicative offer in the $3bn North Queensland Airports auction.

🏗 Sector Specific

Diggers

• Pilbara Minerals is no longer the ASX’s most shorted stock—after being removed from a widely tracked index, short sellers have moved on. Their new target? The uranium sector, with Paladin Energy now taking the top spot.

• The Australian government is sending China a clear message: it’s stepping up efforts to protect national interests in rare earths projects. The warning comes after reports of Chinese interests trying to exert influence on ASX-listed Northern Minerals, including a mysterious Chinese businessman attempting to land a spot on the board.

Fin

• US asset manager Nuveen ($1.3 trillion under management) is eyeing Australia’s Australia’s affluent investors with its new Nuveen Churchill Private Credit Income Fund. The fund offers high-net-worth individuals and family offices direct access to Nuveen’s US master credit fund, which focuses on middle-market corporate debt. Its managers predict 10%-12% returns.

• NAB has tapped Sally Auld, JBWere’s current chief investment officer, to take over as chief economist, succeeding Alan Oster. Auld will step into the role in February, bringing fresh eyes to the Melbourne bank’s economic outlook.

Tech

• Jeff Bezos and Samsung are betting big on AI chips, pumping $700m into Tenstorrent. With a $2.6bn valuation, the startup is positioning itself as a serious contender to NVIDIA’s dominance.

• A judge approves a $271.8m settlement in the case against Uber, which was accused of unlawfully conspiring to run a rideshare business contrary to Australian legislation. According to Maurice Blackburn, it’s the 5th largest class action payout in Aussie history.

• Zip’s cofounder Larry Diamond – elite last name – has stepped down as director and US chairman to focus on philanthropy, but says he will remain a committed shareholder.

Retail & Real Estate

• Exhibit A in the supermarket vs ACCC drama: the humble Oreo. Woolworths is using the classic choccy biscuit as proof its discounts are legit. Just picture it—ACCC's counsel cross-examining Woolies over an Oreo. Definitely a career-defining moment.

• In other Woolies news, Melbourne shelves are looking pretty bleak—no nappies, no toilet paper, just a whole lot of empty space. Over 1,500 United Workers Union members have hit the 12-day mark in their strike across 4 Woolies distribution centres. Woolies has now filed an urgent application to the Fair Work to end the strike that has cost $50m so far.

• The Transport Workers Union has Virgin in a bit of a chokehold, warning it will pull support for the airline’s deal with Qatar Airways if former Qantas exec Paul Jones is named CEO. Why the grudge? Well, back when Jones was at Qantas during the pandemic, he greenlit the sacking of 1,700 workers—a move that was later deemed illegal by the High Court.

🧠 Word Guess

• Revealed slowly, critical to claims (9) - Answer: Discovery