The Federal Government and the Foreign Investment Review Board are concerned about the predatory takeover of undervalued Australian companies resulting from the coronavirus by...China.
Coincidence?
This is a take over as they already own half of Australia and this is not talking about the land it is talking about everything - restaurants units houses ports and airports - they total up half. Think about that.
And by Jove it is happening even as we speak but Joshy is all over it.
Foreign Investment Board braces for Chinese takeovers of distressed Australian assets
By Samantha Hutchinson and Anthony Galloway March 26, 2020 — 10.27pm
There is growing concern within the Morrison government about how to handle foreign takeovers of Australian businesses which have ended up in financial strife as a result of the outbreak of the coronavirus.
The Foreign Investment Review Board is bracing for attempts by foreign companies, particularly from China, to take over distressed Australian businesses and assets.
Treasurer Josh Frydenberg has been fielding concerns about takeovers of Australian assets.CREDIT:ALEX ELLINGHAUSEN
The concern has sparked calls from Liberal MPs to revisit the criteria for FIRB approval of foreign acquisitions, including putting a greater emphasis on company links with foreign governments.
While no such cases are before the FIRB, Treasurer Josh Frydenberg has privately expressed concern about Australian assets ending up in the hands of opportunistic foreign interests over the coming months when more companies are expected to fold.
The FIRB is alive to the issue and is preparing for foreign investors to take more of an interest in Australian companies as economic activity cools, according to senior government sources.
The chair of the federal parliament's powerful intelligence and security committee, Liberal MP Andrew Hastie, has also raised the issue directly with the FIRB.
Mr Hastie told The Age and The Sydney Morning Herald the COVID-19 outbreak had left the Australian business sector vulnerable to predatory behaviour by "foreign state-owned enterprises working contrary to our national interest".
"More than ever, we need to protect ourselves from geo-strategic moves masquerading as legitimate business," Mr Hastie said.
Victorian Liberal MP Tim Wilson, who also sits on the intelligence and security committee, said FIRB approval may need to be more broadly interpreted to keep some businesses and assets from being "preyed upon as an easy out" during the COVID-19 outbreak.
"We can't allow foreign state-owned enterprises and their business fronts to use COVID-19's economic carnage as a gateway to swoop distressed businesses and assets," Mr Wilson said.
The current thresholds for referral to the FIRB include $15 million for agricultural land and $60 million for agribusinesses.
According to some advocacy groups, foreign investors could present a valuable lifeline to struggling Australian companies in the coming months. But each case should be assessed on its implications for national security, Grattan Institute executive director John Daley said.
"I can see why people are nervy about telco assets and energy assets ... but the bulk of assets which are going to be discounted at the moment are retail businesses, and if someone from China wants to buy a chain of hairdressers or a retailer, then good luck to them," he said.
"Foreign buyers of distressed assets aren't necessarily bad buyers."
Utilities providers and hard infrastructure assets such as ports, would also require special consideration from the FIRB and policy makers in the event of foreign interest, Mr Daley said, but there was little evidence of serious foreign interest yet.
In a statement, Treasury said it did not comment on particular cases it was looking at under the foreign investment screening regime.
"Under the Foreign Acquisitions and Takeovers Act, the Treasurer reviews foreign investment proposals against the national interest on a case-by-case basis," the department said.
https://www.smh.com.au/politics/federal ... 1585262443
