“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.
“The Morrison Government welcomes foreign investment where it is consistent with our national interest. Without foreign capital and investment, Australia’s output, employment and standard of living would be lower.”
Since the takeover offer was made in September, Bellamy’s shares have remained just below the total offer price of $13.25.
Bellamy’s, which describes itself as Australia’s number one organic infant formula business, is a considered a known quantity in China, the world’s biggest infant formula market. It generates significant sales in the country via e-commerce.
Bellamy’s chief executive Andrew Cohen, when discussing Bellamy’s full year results at the end of August, said the company had “a brand that’s loved in China”.
But despite this “love”, regulatory changes introduced by Chinese authorities in January 2018 mean Bellamy’s does not have the required approval for its organic infant formulas to be sold in Chinese retail outlets. Currently, its only infant formula sales in China are via online channels.
More to come