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Foreign investment proposal Foodland Holdings Pty Ltd



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TREASURER

EMBARGO STATEMENT BY THE TREASURER, THE HON JOHN HOWARD, MP

FOREIGN INVESTMENT PROPOSAL FOODLAND HOLDINGS LIMITED

The Government has given approval under foreign investment policy for

the acquisition of the Victorian food and liquor wholesaler, Foodland

Holdings Limited, by Island Investment Pty Ltd. Island Investment is a wholly owned subsidiary of the Singapore based company, Cold Storage Holdings Limited, which is 3 h ° /o owned by the Australian-publicly listed

company, Queensland Trading and Holdings Co Ltd.

The proposal was subject to the provisions of the Foreign Takeovers Act

1975 and was considered against the background of existing circumstances in the food distribution industry to determine whether

implementation of the proposal would result in net economic benefits to Australia. ·

i ;

The Government considered that the proposal was not inconsistent with its I r r

foreign investment policy because there were potential economic benefits * i1 associated with the proposal through new investment and increased trade, and the national food distribution industry would remain . |

predominantly Australian-owned and controlled. The Government also noted that there would be a retention of up to 15% beneficial Australian I ' \

equity in Foodland following implementation of the proposal and has j

required as a condition of its approval that beneficial Australian j ' ■ , ' !

equity in Foodland be increased to at least b 0 ° /o within five years. ;

In examining this proposal, the Government and the Foreign Investment

Review Board gave careful consideration to the views of third parties,

CANBERRA ACT 5 October 1980