June 12, 2020

Beston Global Food Company sells dairy farms to Aurora Dairies

Australia's Beston Global Food Company was selling its dairy farms to Aurora Dairies for AUD40.4 million (US$34.46 million), Reuters reported.

The agreement may need regulatory approval due to the new stringent rules for foreign venture.

Aurora Dairies is jointly owned by Canada's Public Sector Pension Investment Board and an Australian fund manager, a spokesman said, making it a firm with overseas interest.

Australia is set to toughen its investment laws, citing national security concerns, giving the Foreign Investment Review Board powers to screen all deals with a foreign investor irrespective of the dollar value.

The Canadian pension fund has been taking interest in Australian assets for a while now, including the acquisition of Australian agribusiness company Webster Ltd in October.

The new rules for foreign investment in Australia may hurt quite a few cross-border deals that are in the pipeline.