Treasurer Jim Chalmers has signalled his intention to block the $672 million takeover bid by US pharmaceutical company Cosette for Adelaide-based Mayne Pharma. The decision is based on concerns that the acquisition would negatively impact the Australian economy. Mayne Pharma is an Australian company that develops and manufactures a range of pharmaceutical products. Cosette specialises in dermatology and extended topical products.
According to Mayne Pharma, Chalmers raised concerns about Cosette’s potential plans to sell or dispose of Mayne Pharma’s Adelaide manufacturing plant. The plant currently employs approximately 200 people, and its closure could have significant repercussions for the local economy and community.
Mayne Pharma informed its investors on Friday about Chalmers’ preliminary view. He believes the acquisition is “contrary to the national interest.” Further details are expected to be released following formal notification of the decision.
The Treasurer’s decision highlights the government’s increasing scrutiny of foreign investment proposals, particularly those that could potentially undermine Australia’s manufacturing capabilities and local employment opportunities.
