SYDNEY, Nov. 15 (Xinhua) -- Australia's Foreign Investment Review Board has approved the sale of Australian infant formula producer, Bellamy's, to the China Mengniu Dairy Company, Australian treasurer Josh Frydenberg said on Friday.
The 1.5 billion Australian (1.02 billion U.S.) dollar takeover carries the stipulation that the company remains headquartered in Australia for a decade, and is run by a majority Australian board.
Mengniu is also required to invest 12 million Australian (8.1 million U.S.) dollars in establishing or improving infant milk formula processing facilities in the Australian State of Victoria.
Frydenberg said in a statement that the deal would ensure the company maintains a presence in Australia, while taking advantage of international export opportunities.
"This approval will ensure Bellamy's can continue to support jobs in Australia and strengthen its ability to expand its domestic market as well as its export opportunities, particularly into the growing Asian market," Frydenberg said.
"The decision will also provide opportunities for the suppliers that contribute to Bellamy's products, including Australian dairy farmers."
Bellamy's is number four by market share in the Australian infant milk formula market.
At the end of trading on Friday, Bellamy's stock price was up by 1.85 percent at 13.19 Australian (8.97 U.S.) dollars per share.