Mr Frydenberg said the Foreign Investment Review Board's (FIRB) "unanimous" recommendation for the deal to be approved came after extensive consultations. He has imposed a range of conditions on the deal, which he said were to ensure that the acquisition was "not contrary to the national interest". The conditions include that Bellamy's keep its headquarters in Australia for at least 10 years, that the majority of its board be Australian resident citizens, and that at least $12 million be invested in improving, or establishing, infant milk formula processing facilitates in Victoria. "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," he said. "The Morrison government welcomes foreign investment where it is consistent with our national interest. Without foreign capital and investment, Australia’s output, employment and standard of living would be lower."

Treasurer Josh Frydenberg. Credit:Alex Ellinghausen Bellamy's confirmed that Mengniu had received written advice from the FIRB that the Commonwealth did not object to the deal. It said the deal remained subject to a number of conditions, including approval of Bellamy's shareholders and court approval. The bid by China Mengniu Dairy Company for Bellamy's has been unanimously backed by Bellamy's board, but has generated political controversy. The Chinese government-owned entity Cofco owns about 16.2 per cent of Mengniu. The deal has put the spotlight on both the FIRB and the Morrison government's attitude to foreign investment at a time when relations between China and Australia have been strained. Loading

On Friday Tasmanian Senator Jacqui Lambie blasted the Morrison government for approving the $1.5 billion deal. She also called for more disclosure about the deal, and warned against a "Communist Chinese takeover" of too many companies that should stay in Australian hands. Shadow treasurer Jim Chalmers said the government needed to explain the decision, particularly around the conditions being imposed on the company. "It is up to the Treasurer to explain how and why this decision is in the national interest," he told The Sydney Morning Herald and The Age. "We are not privy to FIRB advice and haven’t been briefed on the decision. We need to know more about the undertakings that have been given and that they’ll be followed through," he said. Shares in Bellamy's rose 1.9 per cent on Friday, to close at $13.20, their highest closing price since July 2018, and just below the $13.25 per share offer price under the deal.