Australias Foreign Investment Reviewer Approves Chinese Co. $1.5 Billion Takeover of Bellamys
The Foreign Investment Review Board has approved the $1.5 billion takeover of Bellamys by China Meng..
The Foreign Investment Review Board has approved the $1.5 billion takeover of Bellamys by China Mengniu Dairy Company, although the infant formula maker will have to remain headquartered in Australia for a decade and be run by a majority Australian board.
Treasurer Josh Frydenberg has backed the FIRBs view that the acquisition is not contrary to Australias national interest. Subject, however, to conditions including that the majority of Bellamys board of directors be Australian resident citizens.
The Treasurer also requires the Chinese buyer to invest at least $12 million in infant milk-formula processing facilities in Victoria.
“The conditional approval demonstrates our foreign investment rules can facilitate such an acquisition while giving assurance to the community that decisions are being made in a way which ensures that Australias national interest is protected,” Frydenberg said in a statement on Friday.
Shares in Bellamys, which is No. 4 by market share in the Australian infant formula market, surged by more thRead More – Source