Temporarily tightened its rules on foreign takeovers

On 29 March 2020, the Australian government announced temporary changes to the foreign investment review framework that are designed to protect national interests while dealing with the economic implications of the spread of COVID-19. Effective from the date of announcement, all proposed foreign investments into Australia subject to the Foreign Acquisitions and Takeovers Act 1975 (the Act) will require approval, regardless of the value of the investment or the nature of the foreign investor. The temporary change will be achieved by reducing to zero the monetary screening thresholds for all foreign investments under the Act. By temporarily eliminating the thresholds, the Australian Government will ensure appropriate oversight over all proposed foreign investment during this time. The temporary changes to regulations will apply to all new overseas investment proposals as well as those currently in process. The government has also extended the time frame for reviewing deals from 30 days to six months.

• Type:

  • Entry and establishment (Approval and admission)

• Industry:

  • Not industry specific

• Sources:

  • Treasurer of the Commonwealth of Australia, Changes to foreign investment framework, https://ministers.treasury.gov.au/ministers/josh-frydenberg-2018/media-releases/changes-foreign-investment-framework, 29 Mar 2020
  • 7NEWS, Australia tightens foreign investor rules, https://7news.com.au/business/fed-govt-tightens-foreign-investment-rules-c-770428, 30 Mar 2020
  • Financial Times, Australia tightens investment rules on foreign takeovers, https://www.ft.com/content/fda7e3cf-a605-4697-9bc0-6fe91b739eb9, 30 Mar 2020