The announcement of Mengniu's $1.5 billion bid put a rocket under the Bellamy's shareprice on Monday. A Chinese government company Cofco holds a 16 per cent stake in Mengniu. Loading In the period since Bellamy's applied for the crucial China regulatory approval Senator Whish-Wilson said its stock price had been as high as about $22 and as low as $8. He called on the ministers to examine, or direct the Foreign Investment Review Board (FIRB) to examine, a range of questions including "whether any actions by the Chinese government, including withholding import approvals, constitute a conflict of interest and could reasonably be seen to be market manipulation". He also asked "whether any actions by the Chinese government, including withholding import approvals, have suppressed Bellamy's share price ahead of a takeover offer by Mengniu".

"It is imperative that you and your government, when considering foreign investment, ensure the integrity of Australia's market-based system, and that you ensure that investments made by Australian shareholders are not undermined by foreign interests seeking to manipulate Australia's market-based system," Senator Whish-Wilson said. Bellamy's board of directors have unanimously backed the bid, and recommended that Bellamy's shareholders vote in favour of it, in the absence of a superior proposal and subject to an independent expert's assessment. In a statement, Mr Frydenberg described foreign investment as "an important contributor to Australia's economy and standard of living". "Australia maintains a non-discriminatory, case-by-case approach to considering foreign investment proposals. The government does not comment on specific foreign investment matters," he said. Meanwhile, analysts from a Hong Kong firm believe the proposed takeover by Mengniu would "speed up" the Australian infant formula company's much-needed regulatory approval.

The Huatai Financial Holdings analysts painted the deal as a good fit for Mengniu, adding that Bellamy's was superior to another business that Mengniu had sold. "Bellamy's has better growth potential than Junlebao as Mengniu will help the brand to accelerate infant milk formula registration and channel expansion in China," they wrote. It is imperative that you and your government, when considering foreign investment, ensure the integrity of Australia's market-based system. Greens Senator Peter Whish-Wilson The controversy surrounding the acquisition has been absent in Chinese media reports. Some local media articles merely mentioned that the deal had to pass through "Australian courts and regulatory systems" and some did not mention that any reviews were needed. An article by China Business Network, part of the government-owned Shanghai Media group, said: "For Bellamy's, Mengniu's olive branch is undoubtedly "their last hope". The article also claimed that the once-thriving brand was "currently on a substantial downward spiral".