Strauss agrees to mediation in Cadbury case

Strauss Group Ltd. (TASE:STRS) has agreed to mediation with Carmit Candy Industries Ltd. (TASE: CMRT) in the Cadbury case, after three days of evidentiary hearings in the Central District Court at the request of Judge Hadas Ovadia. The mediation will be held in the coming weeks, after the current hearings.

In the early 2000s, the Antitrust Authority investigated allegations that Elite-Strauss (now Strauss Group) torpedoed imports of Cadbury chocolate by Carmit. The Antitrust Authority fined Elite-Strauss NIS 5 million and ordered it not to conduct similar actions in the future. Carmit subsequently sued Strauss-Elite for allegedly using every means possible to keep Cadbury out of the market in violation of antitrust laws and by abusing its monopoly status. Carmit claims that, as a result of these actions, Cadbury severed its ties with the company in 2005, and stopped trying to enter the Israeli market.

Published by Globes [online], Israel business news - www.globes-online.com - on February 19, 2014

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