blanket restrictions on all foreign investment amid COVID-19
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Two recent cases involving foreign entities shipping tonnes of precious medical supplies overseas have sparked immediate action from the Government.
The Government announced that from 29 March 2020, temporary changes will be put in place on all proposed foreign investments into Australia. This means FIRB approval will be required on all proposed foreign investments irrespective of the value or nature of the investor or asset. This temporary change will see the monetary screening threshold reduced to $0. Given the current instability of the market, this ensures appropriate oversight is given to all foreign investment occurring during the COVID-19 crisis, and that all bids are weighed against the national interest.
To protect distressed businesses and their assets from firesale takeovers, each application will be assessed with greater detail, seeing the screening time of all applications extended from 30 days to up to six months.
These measures will remain in place for the duration of the COVID-19 crisis.
If you require assistance, please contact us for further information.
The information contained in this article is general in nature and cannot be relied on as legal advice nor does it create an engagement. Please contact one of our lawyers listed above for advice about your specific situation.
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blanket restrictions on all foreign investment amid COVID-19
Two recent cases involving foreign entities shipping tonnes of precious medical supplies overseas have sparked immediate action from the Government.
The Government announced that from 29 March 2020, temporary changes will be put in place on all proposed foreign investments into Australia. This means FIRB approval will be required on all proposed foreign investments irrespective of the value or nature of the investor or asset. This temporary change will see the monetary screening threshold reduced to $0. Given the current instability of the market, this ensures appropriate oversight is given to all foreign investment occurring during the COVID-19 crisis, and that all bids are weighed against the national interest.
To protect distressed businesses and their assets from firesale takeovers, each application will be assessed with greater detail, seeing the screening time of all applications extended from 30 days to up to six months.
These measures will remain in place for the duration of the COVID-19 crisis.
If you require assistance, please contact us for further information.