2017.04.2421:37:00UTC+00Chow Tai Fook Gains Australian Government Approval for $3 Billion Deal

Hong Kong conglomerate Chow Tai Fook Enterprises Ltd. has obtained the approval of the Australian government regarding its bid for gas and electricity firm Alinta Energy Ltd.

According to a spokeswoman for Treasurer Scott Morrison, the takeover was approved with strict conditions. The deal has been approved by the Foreign Investment Review Board and the treasury declined to comment further.

The buyout bid from Chow Tai Fook valued Alinta at nearly four billion Australian dollars (US$3.02 billion), a person familiar with the topic said. Both companies did not reveal financial terms on the deal.

Chow Tai Fook, which is widely-known for its jewelry business, is the biggest in the world by revenue. For the conglomerate, this deal marks its first significant investment in Australia's energy industry, granting the company control of a utility with nearly 800,000 electricity and gas customers as well as a generation portfolio of as much as 1,957 megawatts.

The Hong Kong conglomerate said it plans to maintain Alinta's current senior management team and aims to expand business through investment in the energy market. The deal is seen to close by the end of April.