Bellamy's boss Andrew Cohen says the $1.5 billion bid from a Chinese dairy giant is in the country's national interest,predicting it will lead to greater investment in Australian dairy farms.
Mr Cohen said China's Mengniu Dairy Company,which made a surprise bid for Bellamy's on Monday,was attracted to the Tasmanian-based company for a number of reasons including that it was"a premium brand",Australia's number one organic brand and a strong e-commerce player in China.
"We think the deal is in the national interest,because look,effectively they're going to keep it as an Australian-run business. If anything,our operations here would grow and our employees would grow,"Mr Cohen said in previously unreported remarks made this week.
The bid sent shares in Bellamy's up 55 per cent on the day,to their highest closing price in more than a year. On Wednesday shares dropped 0.8 per cent,closing at $12.92.
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The proposed deal has put the spotlight on foreign investment in Australia,at a time of an ongoing global trade war and geopolitical tensions between Australia and China. Mengniu is listed in Hong Kong and the Chinese government-owned entity Cofco owns about 16.2 per cent of Mengniu.
The proposed takeover,which Bellamy's directors support and have unanimously recommended to shareholders,will be assessed by the Foreign Investment Review Board,posing another test of the FIRB and the government's attitude towards foreign investment.
Two Tasmanian federal politicians have been quick to raise questions about the deal,calling for intense scrutiny of it by the FIRB. The independent MP Andrew Wilkie said on Monday:"Many Australians will be uneasy with this sale for all sorts of reasons and it's important that the FIRB be seen to act quickly and competently and be prepared to stop it if need be."
Mr Cohen said it was Mengniu's vision"to create a truly iconic Australian brand,in the same way that we want to".