Originally Posted by
Scooter Rassmussin
I’m guessing a Chinese carrier with very deep pockets will buy Virgin when it’s for sale ...
There will be no way to stop the sale as it’s already foreign owned .
That's not a proper interpretation of the Treasurer's powers under the
Foreign Acquisitions and Takeovers Act 1975, the
Foreign Acquisitions and Takeovers Fees Impositions Act 2015 and their associated regulations. Airlines fall under the heading of 'sensitive businesses' which means that the Treasurer's approval is required for any transaction involving any foreign investor acquiring a 'substantial interest' (20 per cent or more) of any Australian-registered airline that is valued above $275 million.
Just because approval was given for a US-based company to acquire 100 per cent of a sensitive business that doesn't obviate the requirement for subsequent acquisitions to have to be approved.