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Australia Rejects $300M Chinese-Bid for Construction Giant Probuild

Australia Australian Foreign Investment Regime China China Business & Economy FIRB foreign investment International josh frydenberg World

Australia Rejects $300M Chinese-Bid for Construction Giant Probuild

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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. The U.S. Department of Defense has blacklisted CSCEC for its links to the People’s Liberation Army, the military arm of the Chinese Communist Party (CCP). The Trump administration also banned investment from U.S. firms into blacklisted companies, to counter Beijing’s Military-Civil Fusion doctrine, which allows the CCP to …

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