• 3 minutes Top 3 Skills for Traders
  • 5 minutes Oil at $40
  • 8 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 11 minutes What Would Happen If the World Ran Out of Crude Oil?
  • 2 hours Trudeau Faces a New Foe as Conservatives Retake Power in Alberta
  • 7 mins Ecoside
  • 20 hours Guaido and the Conoco Award
  • 22 hours Welcome To The Club: Apple In Talks With Potential Suppliers Of Sensors For Self-Driving Cars
  • 12 hours Is Canada hosed?
  • 19 hours The Number Increases: Swiss To Support Belt And Road Push During President's China Trip
  • 22 hours Trump Torpedos Oil Pipeline Haters
  • 23 hours Opening up the waters off the coast of Florida to oil and gas drilling
  • 1 day The Key Players In Libya's "Potential" Civil War
  • 1 day Everything Is Possible: Germany’s Coal Plants May Be Converted to Giant Batteries
  • 1 day Tax Credits for Energy Storage
  • 18 hours Negative Gas Prices in the Permian
Environmentalists’ “Bomb Train” Concerns Are Overblown

Environmentalists’ “Bomb Train” Concerns Are Overblown

President Trump’s executive order aimed…

Australia Set To Block $9.4B Foreign Bid For Its Biggest Gas Pipeline Group

Pipeline

Australia’s Treasurer Josh Frydenberg said on Wednesday that he had advised a Hong Kong-based consortium that its US$9.4 billion (AUS$13 billion) takeover bid for APA Group, the largest Australian gas pipeline firm, would be contrary to Australia’s national interest.

“I have formed this view on the grounds that it would result in an undue concentration of foreign ownership by a single company group in our most significant gas transmission business. I intend to make a final decision under the formal process within two weeks,” Frydenberg said in a media statement.

APA Group is the largest gas transmission system owner in Australia, owning 15,000 km (9,320 miles) of pipelines representing 56 percent of Australia’s gas pipeline transmission system. It also supplies gas for part of all mainland capital cities’ consumption, gas-fired electricity generation assets, and liquefied natural gas (LNG) exports.

Earlier this year, APA received an unsolicited proposal from a consortium led by CK Infrastructure Holdings Limited (CKI)—part of the conglomerate of Hong Kong tycoon Li Ka-shing—and granted due diligence.

The Australian Competition & Consumer Commission (ACCC) said in September that it would not oppose the proposed acquisition, but on the condition that the buyer sell some assets in Western Australia, where it is already present, so as not to distort competition.

Treasurer Josh Frydenberg said today that he had formed his preliminary view taking into account analyses in close consultation with the Foreign Investment Review Board (FIRB) and the Critical Infrastructure Centre (CIC).

“My preliminary view reflects the size and significance of APA Group. It is about the extent to which the proposal is consistent with Australia’s national interest. The application of our foreign investment policy, expressed through my preliminary view, is not discriminatory against any investor or country,” Frydenberg said.

“My preliminary view is not an adverse reflection on CK Group or the individual companies. CK Group companies are already a substantial investor in Australia’s gas and electricity sectors and a significant provider of infrastructure services that millions of Australians rely upon.”

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Chin Huang on November 08 2018 said:
    You cannot own anythng in a communist country like Russia, Venezuela, Cuba, or China. Best to pay cash for something in Australia.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News