CANBERRA, March 1 (Xinhua) -- Chinese companies looking to invest in Australian businesses should avoid bidding on "national icons" to save being denied by the Australian government, the chairman of Australia's Foreign Investment Review Board (FIRB) has said.
Following a number of high-profile decisions by the government to deny the sale of key Australian infrastructure and assets including the S. Kidman & Co. cattle empire to foreign investors, FIRB boss Brian Wilson has said potential investors need to be aware of the companies they take interest in.
In comments published in Wednesday's papers, Wilson said in the case of the Kidman sale, it was evident to the public and the government that such an "iconic" company should stay in majority Australian hands.
He said while it was nothing against Chinese investment firm Pengxin, which had its 370 million Australian dollar (285 million U.S. dollar) bid denied by the government on "national interest" grounds, iconic companies were always going to be a "hard sell" to the government.
"Because it was so iconic and so large, (the Kidman sale) caught the public imagination," Wilson told the Australia China Business Council forum on Chinese investment in Australian agriculture overnight.
"Given that (Australia) must maintain public confidence in our foreign investment stream, I'd suggest that if you are a (Chinese company) looking to invest, that you try to avoid icons."
The Australian government eventually approved the sale of S. Kidman & Co. mid last year; the winning bid was one from mining magnate Gina Rinehart's Hancock Prospecting (two-thirds) and China's Shanghai CRED (one-third).
Wilson said if Chinese companies were set on an Australian "business icon," they needed to convince the government of the benefits foreign ownership would bring.
"My advice if you are thinking of investing is stay away from the business icons -- they are always going to be difficult -- and really make the case for the benefits (of foreign investment), by talking about jobs created, the growth of markets, added value and what your capital can do," he said.
Following Wilson's comments at the forum, Treasurer Scott Morrison told News Corp the government welcomes all foreign investment, particularly from China, so long as it is in the "national interest."
"The foreign investment framework facilitates investment while giving assurance to the Australian community that the investment is being made in a way that does not compromise Australia's national interest," Morrison said on Wednesday.
A single purchase
