Bunnings uses your face in privacy breach

G’day.

Welcome to Point Blank.

Today’s brief:

• Lawyers should avoid “combative correspondence”, with Corrs in the spotlight

• Bunnings uses facial recognition tech across 62 stores in breach of privacy laws

• In the US, talks of Google breakup continue with Chrome on the chopping block

 💼 Practice Points

• Dreaming of life at the bar? The Federal Court just gave junior counsels a boost. In a recent note to the profession, they encouraged parties to give juniors a shot at the substantive speaking role when both junior and senior counsel are briefed, allowing them to hone their advocacy skills.

• “Not less than 7 days” sounds like a no-brainer, right? But the NSW Supreme Court recently threw a curveball. When ASIC took the stance that “not less than 7 days” under the Corporations Act meant you had to wait a full 7 clear days, the Court disagreed, ruling you could take action on the 7th day itself.

• Lately, we’ve seen a surge in supersized reverse break fees in M&A deals—those fees the bidder pays if the deal falls through (usually due to something within their control) to ensure deal certainty. But do reverse break fees actually do the job, or are they just for show? KWM suggest ticking fees—payments made to target shareholders as a boost to the deal consideration for any delays. Ticking fees benefit shareholders directly and keep both sides motivated to move quickly. Could they be the next big thing in M&A?

🏘️ Word on the Street 

• NSW Supreme Court judge has Corrs Chambers Westgarth’s “combative correspondence” in a construction defects claim. Instead of explaining why Corrs’ client required certain documents, Corrs opted for “heated correspondence” and a notice to produce. Stevenson J rejected Corrs’ cost order for preparing correspondence and an affidavit setting out why the documents were needed. He saw “no justification” for the order where the affidavit was the time this information was communicated to the other side.

• Holding Redlich expands its Canberra offering with 2 new partners. Nevin Agnew and Jeremy Johnson join the public sector-focused office, with Agnew’s move coming after 32 years at MinterEllison.

📢 Talking Points

• Snag central Bunnings has been found to have breached privacy laws with the use of facial recognition tech in stores. The Wesfarmers-owned company rolled out the tech across 62 stores between 2018 and 2021 in an attempt to protect against serious issues, such as crime and violent behaviour. Kmart and The Good Guys are also proponents of the technology that captures and stores your biometric information – without your knowledge until now, perhaps. Bunnings said it will seek a review of the decision.

• Competition is heating up for big tech. The US DOJ has asked a judge to force Google to sell off its Chrome browser. If the judge agrees, it’ll be the most aggressive move against a tech giant since Washington’s failed attempt to break up Microsoft 20 years ago. But would breaking up Google really help consumers? On one hand, people say monopolies stifle innovation. On the other, Google’s search engine is fast and tools like Gmail and Google Maps are essential for millions. If regulators want real competition, they need to do more than just break up tech giants—they need to foster an environment where start-ups can scale and meet users' demands for convenience and trust.

• The federal government has bailed on a nuclear pact with allies, including AUKUS partners, to speed up civilian nuclear energy development—apparently because Australia isn’t planning to go nuclear anytime soon. Critics are calling it an international embarrassment.

• As the Ukraine conflict entered its 1000th day, Putin just signed off on a decree giving Russia the green light to go nuclear if hit with a massive conventional attack. The move comes hot on the heels of Ukraine’s first strike on Russian soil using a Western-supplied ATACMS missile.

🏦 The Treasury

🤝 Deal Room

• Australia’s Sayona Mining is snapping up US-based Piedmont Lithium to strengthen its Canadian operations and its presence in the North American EV sector, including through Piedmont’s relationships with Tesla and LG. The combined entity will have a market cap of $623m.

• PEXA, the financial infrastructure giant with a tight grip on Australian land settlements, is setting its sights on Canada. The company has made an informal takeover bid for Dye & Durham, a Toronto-listed player in legal and information services.

• Shein is eyeing a London Stock Exchange listing early next year, targeting a £50bn (A$77bn) IPO. This follows a wave of political pushback against a US listing, citing concerns over its Chinese ties. Retail customers have also piled on, urging the UK government to block the listing, accusing Shein of exploiting workers, damaging the environment, and dodging taxes.

🏗 Sector Specific

Diggers

• Santos is doubling down on carbon storage, aiming to bury 14 million tons of emissions annually by 2040—half its scope 3 footprint from customer emissions last year. The move comes after launching its Moomba carbon capture site and plans to serve third-party polluters, including Asia’s heavyweights. Despite carbon capture’s limited success so far, the Adelaide-based giant is betting big on it alongside strong LNG demand through 2040.

• Traditional owners are making their mark in the Pilbara, pushing the WA EPA to slash groundwater extraction in West Pilbara to 4bn litres per year—half of what’s currently being extracted. This could leave Rio Tinto scrambling to build a second $400m desalination plant for its Pilbara iron ore operation.

• The LPB has issued compulsion notices to MinRes over its "piss-weak” handling of a harassment investigation. Almost everything was mishandled: women were told to WFH while the accused man continued working at the head office, verbal apologies were only offered after the women found out he hadn’t been fired, but rather given a cushy exit with full entitlements.

• Last week, Global Lithium Resources tried to delay its AGM, fearing a minority shareholder might seize control—raising red flags over a potential foreign ownership breach. The WA Supreme Court granted a 3-month delay to give FIRB time to investigate.

Fin

• APRA has slapped superannuation giant HESTA with an order to compensate more than 120k members after it left their retirement savings tied up in unlisted assets that tanked during the early days of the pandemic. One customer saw their balance drop by $17k in just a week…

Tech & Media

• Nvidia has more cash than it knows what to do with—a tough problem to have. Even after ramping up dividends and buybacks, its cash pile has doubled in the past year to $35bn, giving it plenty of firepower for M&A.

• Canva’s choice of Kelly Steckelberg as CFO is a clear signal they’re gearing up for an IPO—even if they’re staying tight-lipped on when it’ll happen. Steckelberg spent the last 7 years as Zoom’s CFO, overseeing its IPO along the way.

Retail & Real Estate

• After being hit with allegations of a crude remark directed at a Victorian regulator, Tabcorp’s board forced its CEO out—whether through termination or resignation. But the CEO clapped back: the Fair Work deputy president is letting him take his unfair dismissal case to the commission.

• MinRes boss Chris Ellison and his wife have put their Perth mansion up for sale. The Ellisons – although tied up on other pressing matters – have listed one of their homes with real estate agent Jody Fewster, daughter of the late Alan Bond no less. The home is one of the few adjoining properties that the couple snapped up a decade ago for about $5m, the same asking price for today’s market.

🧐 Wednesday Wisdom