Foreign Acquisitions and Takeovers: Changes to Australia’s Foreign Investment Rules

The Foreign Acquisitions and Takeovers Act 1975 (Cth) (FATA) has recently been amended so that transactions that result in foreign investors gaining, whether now or in the future, influence or control over an Australian company are now subject to Australia's foreign investment rules.

What do the amendments mean?

Parties involved foreign investment transactions should be aware that:

• foreign investment transactions by way of options to take up unissued shares, convertible notes, and other more sophisticated financing instruments or structures giving overseas financiers potential "equity upside" or voting power, will be subject to:
  • the Treasurer's powers to assess, impose conditions on, and prohibit such transactions