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Foreign investment proposal



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108

TREASURER

EMBARGO 8.00. PM

NO.

STATEMENT BY THE TREASURER, THE HON JOHN H O W A R D , MP

FOREIGN INVESTMENT PROPOSAL CHASE MANHATTAN BANK.ยท: CHASE-NBA GROUP LTD AND ASSOCIATED COMPANIES

The Government has approved a foreign investment proposal by

the Chase Manhattan Bank to increase to 50% its current

one-third shareholding in the Melbourne based merchant banks

Chase-NBA Group Ltd and All-States Commercial Bills Ltd. The

Government has also approved lesser increases in several

other companies associated with the Chase-NBA Group.

The remaining equity in the case of Chase-NBA Group Ltd and

All States Commercial Bills L t d , will be held by the National

Bank of Australasia Ltd. The shares to be purchased are

essentially from the Australian-owned A.C. Goode Associates Ltd.

The proposal for Chase to increase its shareholding in Chase-NBA

and other members of the group comes within the scope of the '

Government's policy covering foreign investment in non-bank

financial intermediaries. All proposals to acquire or increase

substantial interests in existing non-bank financial intermediaries

are closely examined regardless of size. Substantial benefits must

2

be demonstrated taking account of the implications of the

proposal for the financial sector and the level of

Australian ownership.

In accordance with this policy the Government decided to

approve the proposal because of the desire of Goode

Associates to withdraw due to its reluctance to match

the contributions of the two banks in development of the

Chase-NBA Group, particularly in the medium term loan-

market.

Following implementation of the proposal the Chase-NBA

Group should be better placed to play a stronger role

in the Australian financial sector.

CANBERRA ACT

19 August 1980