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Australian competition regulator suing BlueScope Steel over 'cartel conduct'

BlueScope Steel Ltd. Chairman John Bevan said the board is treating allegations put forward by the Australian Competition & Consumer Commission, or ACCC, "very seriously."

The ACCC kicked off civil proceedings in the federal court against BlueScope and its former general manager sales and marketing Jason Ellis for alleged cartel conduct in the supply of flat steel products.

The competition regulator said Aug. 30 that BlueScope and Ellis, between September 2013 and June 2014, tried to get various steel distributors in Australia and overseas manufacturers to enter agreements containing a price fixing provision.

The ACCC is looking to impose fines on BlueScope and Ellis, as well as an order disqualifying Ellis from managing corporations.

Bevan said the company conducted its own internal investigation, and did not find any evidence of cartel conduct.

"While we have not seen all of the evidence that has been relied on by the ACCC, based on what we know today, we do not believe that BlueScope, or any current or former employees, have engaged in cartel conduct," Bevan said.

The company will review the evidence as it is received and continue to engage with the ACCC, it said.

BlueScope's fiscal 2019 net profit sagged 35% to A$1.02 billion, or A$1.90 per share, mainly due to unbooked tax losses and U.S. tax reform in fiscal 2018, impairments at its Thailand building products segment and higher restructuring costs in its fiscal 2019.