China’s Yanzhou Coal’s A3.5 billion takeover deal for Australian miner Felix has received approval from Australia’s Foreign Investment Review Board. While the buyout follows two resubmissions to FIRB and a set of strict conditions imposed by Treasury, the deal is considered a significant boost to China’s insatiable appetite for Australian resources.Yanzhou will have to operate its Australian mines through an Australian-based company to be listed on Sydney's stock exchange by the end of 2012. Assistant Treasurer Nick Sherry said the proposed deal was significant as it represented the first time a Chinese state-owned enterprise operating in Australia would list on the Australian Stock Exchange.
Yanzhou will also have to reduce its ownership of Felix's four coal mines to 50 percent and reduce its stake in the new firm to 70 percent by the time of the listing.
The approval comes after statements from FIRB chief, Patrick Colmer, told an investment conference in Sydney in September that the review board preferred foreign state owned investments to be below 50 percent for new ventures and 15 percent for big producers.
Felix shareholders will vote on the takeover bid in December.

Under the deal,