Federal Treasurer Josh Frydenberg has advised the consortium led by CK Asset Holdings (CK Group) that he has deemed the proposed acquisition of APA Group to be contrary to the national interest.
Mr Frydenberg said, “I have formed this view on the basis that it would result in a single foreign company group having sole ownership and control over Australia’s most significant gas transmission business.
“I thank CK Group for the way they have engaged constructively, both before and since my preliminary decision.
“My decision 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.
“The Australian Government welcomes CK Group’s investments in Australia and its broader contribution to the Australian economy.”
Mr Frydenberg said the Government remains committed to welcoming foreign investment into Australia.
APA Group has reconfirmed its FY2019 guidance following termination of the Implementation Agreement with the CKI Consortium. The Implementation Agreement was terminated in accordance with its terms, following the Federal Treasurer’s decision to prohibit the CKI Consortium’s proposed acquisition of APA.