govt seeking to amend foreign takeover rules

This may put a wrinkle in the RDI t/o perhaps.




Govt seeking to amend foreign takeover rules

12/02/2009 4:58:00 PM
The Federal Government is seeking to amend laws governing acquisitions and takeovers from foreign entities because of growing complex investment structures, Treasurer Wayne Swan says.

The amendment will ensure that the Foreign Acquisitions and Takeovers Act applies equally to all foreign investments irrespective of the way they are structured.

In particular, investments including through instruments such as convertible notes, will be treated as equity for the purposes of the act, Mr Swan said in a statement.

"Even in the face of a global economic recession, investors recognise the underlying strengths of the Australian economy, and we are seeing strong interest in investments in the Australian resource sector," Mr Swan said.

"The Government welcomes foreign investment in the development of Australia's resources."

He said the Government's intention is to introduce the amendment into parliament as soon as practical and will be effective from today.

This action came as mining giant Rio Tinto confirmed it was in talks with Chinalco about a possible transaction.

"Rio Tinto notes continued media speculation in connection with a possible transaction with Chinalco and confirms the parties are in negotiations, which may or may not lead to any agreement being reached," it said in a statement on Thursday.

Media reports suggested Rio Tinto was set to sell convertible bonds and minority stakes in mining assets worth $US19 billion ($A29.04 billion) to Chinalco.

http://www.independentweekly.com.au/news/local/news/general/govt-seeking-to-amend-foreign-takeover-rules/1432537.aspx