FIRB Submissions - Japan Post takeover bid of Toll Holdings

Calling all mail stakeholders - make your submissions to the Foreign Investment Review Board

Japan Post takeover bid for Toll Holdings (TOL.AU). (News Articles)

While FIRB may not solicit submissions from third parties (except state and territory government departments and agencies) there is nothing stopping all mail stakeholders from making submissions directly to FIRB for consideration before they make their recommendation to the Federal Treasurer.

The criteria that FIRB follows in their considerations are as follows:

National Security
The Government considers the extent to which investments affect Australia’s ability to protect its strategic and security interests. The Government relies on advice from the relevant national security agencies for assessments as to whether an investment raises national security issues.
The Government favours diversity of ownership within Australian industries and sectors to promote healthy competition. The Government considers whether a proposed investment may result in an investor gaining control over market pricing and production of a good or service in Australia. For example, the Government will carefully consider a proposal that involves a customer of a product gaining control over an existing Australian producer of the product, particularly if it involves a significant producer. The Government may also consider the impact that a proposed investment has on the make-up of the relevant global industry, particularly where concentration could lead to distortions to competitive market outcomes. A particular concern is the extent to which an investment may allow an investor to control the global supply of a product or service. The Australian Competition and Consumer Commission also examines competition issues in accordance with Australia’s competition policy regime. Any such examination is independent of Australia’s foreign investment regime.
Other Australian Government Policies (Including Tax)
The Government considers the impact of a foreign investment proposal on Australian tax revenues. Investments must also be consistent with the Government’s objectives in relation to matters such as environmental impact.
Impact on the Economy and the Community
The Government considers the impact of the investment on the general economy. The Government will consider the impact of any plans to restructure an Australian enterprise following an acquisition. It also considers the nature of the funding of the acquisition and what level of Australian participation in the enterprise will remain after the foreign investment occurs, as well as the interests of employees, creditors and other stakeholders. The Government considers the extent to which the investor will develop the project and ensure a fair return for the Australian people. The investment should also be consistent with the Government’s aim of ensuring that Australia remains a reliable supplier to all customers in the future.
Character of the Investor
The Government considers the extent to which the investor operates on a transparent commercial basis and is subject to adequate and transparent regulation and supervision. The Government also considers the corporate governance practices of foreign investors. In the case of investors who are fund managers, including sovereign wealth funds, the Government considers the fund’s investment policy and how it proposes to exercise voting power in relation to Australian enterprises in which the fund proposes to take an interest. Proposals by foreign owned or controlled investors that operate on a transparent and commercial basis are less likely to raise national interest concerns than proposals from those that do not.

When making your submission, ensure you have taken into consideration and addressed at least one of the above criteria in your arguements otherwise your submission will be deemed irrelevent.

Submissions to be made to:

The Executive Member - Foreign Investment Review  
Telephone: +61 2 6263 3795 (9:00 am – 12:30 pm and 1:30 pm – 5:00 pm AEST, Monday to Friday, excluding public holidays)