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Australia Rejects $300M Chinese-Bid for Construction Giant Probuild
A multi-million dollar bid by one of the world’s largest construction firms to acquire a majority stake in Australian-based Probuild has been blocked by the foreign investment regulator and Treasurer Josh Frydenberg.
The almost $300 million bid by the state-owned China State Construction Engineering Corporation (CSCEC) to acquire an 88 percent stake in Probuild was rejected on “the grounds of national security” by the Foreign Investment Review Board (FIRB).
According to an investor notice from current Probuild owner, South Africa-based Wilson Bayly Holmes-Ovcon (WBHO), the Chinese firm withdrew the proposed investment after it was advised the federal government would reject its application.
A $300 million offer by a Chinese company to buy an Australian builder is withdrawn on the back of advice that Treasurer Josh Frydenberg and the Foreign Investment Review Board will declare the transaction a risk to national security and contrary to Australia's interest.
Treasurer Josh Frydenberg has rejected a $300 million bid by China to acquire a major Australian building contractor.
China State Construction Engineering Corporation has now formally withdrawn its offer to takeover local construction giant Probuild.
Probuild’s South African parent company confirmed the deal was taken off the table in a statement, saying the offer was withdrawn “following advice that it’s application would be rejected by the Federal Government on the grounds of national security.”
In a statement, Mr Frydenberg said “the government does not comment on the application of the foreign investments screening arrangements as they apply or could apply to particular cases”.
Sky News understands the federal government has concerns about the firm’s links to the Chinese defence industry.
Acting Prime Minister Michael McCormack also addressed the treasurer’s comments, saying “I can assure Australians the Australian government will always do what’s in
Treasurer Josh Frydenberg has shot down an offer made by state-owned China State Construction Engineering Corporation to acquire Australian-based company Probuild.