Bellami is still waiting for Chinese regulators to allow retail stores. (photo of Australian news agency)
According to the Australian news agency, the Foreign Investment Review Committee ((Foreign Investment Review Board,) has approved the acquisition of Bellamy`s)., an Australian dairy company, by (China Mengniu Dairy Company), a Chinese Mengniu dairy company, for A $1.5 billion. According to the OIA, the company must be headquartered in Australia over the next decade and managed by the majority Australian board of directors.
Australian fiscal minister Fledenberg (Josh Frydenberg) supports the views of the Australian Foreign Investment Commission. That is, the acquisition is not contrary to Australia`s national interests. At the same time, the acquisition imposed a number of conditions, including that most of the members of the board of directors of Belia after the acquisition must be citizen of Australia.
Australia`s finance ministry also asked Chinese buyers to invest at least A $12 million in infant formula processing facilities in Victoria.
"conditional approval shows that our foreign investment rules can promote such acquisitions, while assuring society that decisions will ensure that Australia`s national interests are protected," Fledenberg said in a statement on Friday.
In terms of market share, Belle Latin America ranks fourth in the Australian infant formula market. Shares in Latin America soared more than 50 percent in September when (China Mengniu Dairy Company), a Chinese Mengniu dairy company, announced a cash offer of A $13.25 a share.
The Tasmanian board of directors unanimously advised shareholders to vote in favour of the proposal, but denied that the acquisition and Chinese regulation allowed it to expand rapidly in China with any relationship.
After a long wait, Belia is still waiting for the support of the State Administration of Market Supervision to allow the product to sell organic formula on the counter of Chinese retail stores.
Shares in Latin America soared 2.1 percent to A $13.22 in the minutes after the start of trading, the highest value since July 2018.
