Australia is perceived as an attractive investment destination, particularly given our proximity to Asia.
State owned enterprises and sovereign wealth funds have emerged as significant investors in the Australian market and foreign investment is dominating the Australian M&A landscape.
This means clients are increasingly operating in multiple jurisdictions and may be considering different types of acquisitions across different industry sectors, many of these transactions require applications to the Foreign Investment Review Board (FIRB).
We have an explicit strategy for engaging with FIRB - Corrs believes the best way to get a result for our clients is to build a relationship with government that is transparent and open.
It is crucial that the parties tenaciously search for a “win-win” outcome. That means limiting the downside to the national interest as much as possible. This must be assessed strategically and on a deal basis - there is no one size fits all.
Having an approach based on "mutual respect" and "mutual benefit" pays dividends when negotiating with FIRB. Foreign investors require experienced and commercially astute legal advisers that understand not just the direct foreign investment regime but also public M&A rules.
When global oil and gas giant, BG Group, trumped a bid from Arrow Energy to takeover Queensland coal seam gas producer Pure Energy, rapid and tactical pre-bid manoeuvres were essential to success. While BG Group prepared to spark the hotly-contested bidding war, Corrs assisted with pre-bid stake building.
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ASX listed Aquila Resources Limited was able to transform itself into a big player in the iron ore and coal industry following a strategic co-operation agreement with Baosteel Group Corporation, one of China's largest state owned enterprises and its largest steel producer. Corrs advised Baosteel, on its strategic investment in Aquila.
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FQM Australia Nickel Pty Ltd, a subsidiary of Canadian mining company First Quantum Minerals Ltd, acquired Ravensthorpe Nickel mine in Western Australia from BHP Billiton for US$340 million in 2010. The acquisition was the first in Australia for Canadian owned First Quantum Minerals.
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Yanzhou Coal became the first Chinese state-owned enterprise to acquire 100% of an Australian listed company through the A$3.5 billion acquisition of Felix Resources. The deal featured an innovative undertaking whereby Yanzhou Coal would list Yancoal Australia on the Australian Securities Exchange by no later than the end of 2012, thereby guaranteeing public ownership.
The Federal Government’s new legislation to strengthen the anti-dumping system, and Manufacturing Australia’s calls for reform, are misguided.
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The currency swap agreement between Australia and China is a positive step forward in our relationship with our largest trading partner. But it’s about more than that…
MoreAustralia is an exceptional place in which to do business. Find out how we can help you develop your business in Australia.
DownloadIn the decision of Commonwealth Bank of Australia v Anand [2011] NSWSC 613, the Supreme Court of New South Wales considered whether a mortgagee’s failure to register a charge within time, thereby rendering the charge void, would impact on a guaranto
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When global oil and gas giant, BG Group, trumped a bid from Arrow Energy to takeover Queensland coal seam gas producer Pure Energy, rapid and tactical pre-bid manoeuvres were essential to success. While BG Group prepared to spark the hotly-contested bidding war, Corrs assisted with pre-bid stake building.
Corrs then worked with BG Group to obtain a Pure Energy board recommendation and an acceptance announcement from major shareholders, as well as Foreign Investment Review Board approval ahead of statutory timetable. This allowed BG Group to make its unconditional winning $1 billion bid.
ASX listed Aquila Resources Limited was able to transform itself into a big player in the iron ore and coal industry following a strategic co-operation agreement with Baosteel Group Corporation, one of China's largest state owned enterprises and its largest steel producer. Corrs advised Baosteel, on its strategic investment in Aquila.
The deal represented Baosteel's first significant global investment. The deal was pursuant to the Memorandum of Strategic Co-operation and subject to FIRB and Chinese Government approvals: Baosteel subscribed to 15% of Aquila's shares, valued at circa A$300 million.
Baosteel and Aquila established a strategic alliance covering six of Aquila's key development and production projects in Australia and South America. Under the alliance, the parties negotiated arrangements for Baosteel to support Aquila with the marketing and sales of products from those projects, and the raising of multi-billion dollars of Chinese finance to secure development of those projects.
FQM Australia Nickel Pty Ltd, a subsidiary of Canadian mining company First Quantum Minerals Ltd, acquired Ravensthorpe Nickel mine in Western Australia from BHP Billiton for US$340 million in 2010. The acquisition was the first in Australia for Canadian owned First Quantum Minerals.
Corrs advised First Quantum on the acquisition, navigating all the relevant regulatory approvals including from the Australian Foreign Investment Review Board and the West Australian Minister for Mines and Petroleum.
The local economy benefited from this injection of funds and more importantly First Quantum’s long-term commitment to realising optimum nickel production with the employment and ancillary opportunities.
Yanzhou Coal became the first Chinese state-owned enterprise to acquire 100% of an Australian listed company through the A$3.5 billion acquisition of Felix Resources. The deal featured an innovative undertaking whereby Yanzhou Coal would list Yancoal Australia on the Australian Securities Exchange by no later than the end of 2012, thereby guaranteeing public ownership.
Corrs advised Yanzhou Coal on what was the biggest ever Chinese deal in the Australian coal sector at the time.
The implementation of the transaction involved managing disclosures on three key stock exchanges - ASX, Shanghai and Hong Kong. A tight timeframe of only four months was met, even though all documents had to be translated and there were significant language and cultural differences that the team had to overcome.
Australia is an exceptional place in which to do business. Find out how we can help you develop your business in Australia.
In the decision of Commonwealth Bank of Australia v Anand [2011] NSWSC 613, the Supreme Court of New South Wales considered whether a mortgagee’s failure to register a charge within time, thereby rendering the charge void, would impact on a guaranto
The currency swap agreement between Australia and China is a positive step forward in our relationship with our largest trading partner. But it’s about more than that…
The Federal Government’s new legislation to strengthen the anti-dumping system, and Manufacturing Australia’s calls for reform, are misguided.