Chinese takeover of Bellamy's
A Launceston success story is being bought out by a Chinese company.
The Foreign Investment Review Board has given the takeover of Tasmanian infant formula marketer Bellamy's the green light, with a few strings attached.
The $1.5 billion dollar takeover will proceed as long as the communist-controlled China Mengniu Dairy Company agrees that Bellamy's will remain headquartered in Australia for at least a decade, and is run by a majority Australian board.
Ironically, Mengniu was one of the companies caught up in China's 2008 infant formula scandal which saw a huge spike in demand for Australian product.
The Bellamy's Board has urged shareholders to vote in favour.
The Treasurer Josh Frydenberg also requires the Chinese buyer to invest at least $12 million dollars in infant milk formula processing facilities in Victoria.
"This approval will ensure Bellamy's can continue to support jobs in Australia and strengthen its ability to expand its domestic market as well as its export opportunities, particularly into the growing Asian market," he said.