Australia tightens foreign investment rules on the sale of electricity assets

On 1 February 2018, the Government announced that all future applications for the sale of electricity transmission and distribution assets, and some generation assets will attract ownership restrictions or conditions for foreign buyers. This approach will allow the Government to actively manage the level of ownership and control from investors in a single asset or within a sector. Each case will be assessed on a case-by-case basis, taking into account a range of factors such as the cumulative level of ownership within a sector, the need for diversity of ownership and the asset’s critical importance. In its media release, the Government also made it clear that it is committed to an open foreign investment regime that strikes the right balance in managing national security risks, while promoting job opportunities and enabling economic growth.

• Type:

  • Entry and establishment (Ownership and control, Approval and admission)

• Industry:

  • Services (Electricity, gas, steam and air conditioning supply)

• Sources:

  • Australian Government The Treasury, New conditions on the sale of australian electricity assets to foreign investors, http://sjm.ministers.treasury.gov.au/media-release/005-2018/, 01 Feb 2018
  • reuters, UPDATE 2-Australia curbs foreign ownership of farmland, electricity grids, https://www.reuters.com/article/australia-politics-investment/update-2-australia-curbs-foreign-ownership-of-farmland-electricity-grids-idUSL4N1PQ768, 01 Feb 2018