Foreign companies will have to factor in some level of political risk when they consider investing in Australia following the blocking of the ADM bid. PAC Partners agribusiness analyst Paul Jensz says the GrainCorp case adds another level of complexity for overseas investors. No matter how economic rational a decision might be and how they appease the stakeholders, there is a political layer that is a little bit tough to predict.
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Remember Singapore's SGX in its bid on ASX. So many complications on foreign ownership rules. SGX backed out later. Yes! I guessed SGX went out of the door, and have not made any moves into Australia. Not sure if foreign investors will be interested in taking up stakes in Aussie companies.