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Foreign investment proposal



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TREASURER

EMBARGO IMMEDIATE RELEASE

PRESS RELEASE NO. 173

STATEMENT BY THE TREASURER, THE HON JOHN HOWARD, MP

FOREIGN INVESTMENT PROPOSAL .

H T E B C O INCORPORATED/JULIUS MARLOW HOLDINGS LIMITED

The Government has re-affirmed its decision of 4 September 1980 that a

proposal by Interco Incorporated of the USA to increase its shareholding

in Julius Marlow Holdings Limited from 66$ to 100$ would be inconsistent

with foreign investment policy. The 4 September 1980 decision was reviewed

at the request of the parties in the light of fresh submissions.

The proposal was examinable under foreign investment policy because it would

involve an increase in a substantial foreign shareholding in an Australian

company. For approval to be granted, the Government would have to be satisfied

that there Eire sufficient national benefits to offset the loss of Australian

ownership.

In re-affirming this decision the Government took ceireful account of whether

Australian shareholders should be allowed to decide if they wished to accept

the Interco offer or to retain their interests in the company. It gave careful

consideration to the views of all parties as well as the minority shareholders

However, the Government concluded that the potential nationEil benefits which

might be expected to result from the acquisition would not be sufficient to

offset the substantial loss of Australian ownership in a leading footwear

manufacturer and that approval was not warranted.

CANBERRA, ACT 10 December 1980