Shock horror – more Chinese foreign investment

The Herald reports:

Dairy giant Fonterra will purchase an 18.8 per cent stake in Chinese infant formula maker Beingmate Baby & Child, slightly less than the 20 per cent shareholding it was aiming for.

The company has this afternoon confirmed the completion of a partial tender for the shares, which was submitted to the Shenzhen Stock Exchange on February 12.

Fonterra will purchase 192.4 million Beingmate shares at 18 yuan a piece for 3.5 billion yuan ($754.3 million), excluding transaction fees.

A good reminder that foreign investment runs both ways. Those who wish to restrict or stop foreign investment into NZ, would see NZ companies like Fonterra shut off from the world unable to invest overseas. Free trade and investment benefits traders, investors and recipients of investment. Long may they occur.