Yeah that one had me scratching my head too. It’s a very simplistic point of view, but Australia is a mining country, a baby formula country not so much. I just can’t see the federal government approving what is essentially a fire sale of A40, which has significant resource exploration potential, to a Chinese entity (at least not in a majority).
If a Korean, Japanese, US or European company made a bid it might be considered, but Chinese investment in the resources and physical assets of other countries is a very sensitive topic right now, and there’s few things more sensitive to the Australian economy than mining.
A40 Price at posting:
8.2¢ Sentiment: None Disclosure: Not Held
