June 11 (Reuters) - Australia’s Beston Global Food Company said on Thursday it was selling its dairy farms to Aurora Dairies for A$40.4 million ($34.46 million), in a deal which may need regulatory approval due to the new stringent rules for foreign investment.
Aurora Dairies is jointly owned by Canada’s Public Sector Pension Investment Board and an Australian fund manager, a spokesman told Reuters, making it a firm with overseas interest.
Australia is set to toughen its investment laws, citing national security concerns, giving the Foreign Investment Review Board powers to screen all deals with a foreign investor irrespective of the dollar value.
The Canadian pension fund has been taking interest in Australian assets for a while now, including the acquisition of Australian agribusiness company Webster Ltd in October.
The new rules for foreign investment in Australia may hurt quite a few cross-border deals that are in the pipeline.
$1 = 1.4337 Australian dollars Reporting by Shreya Mariam Job in Bengaluru; Editing by Kim Coghill