The news: Federal Treasurer Jim Chalmers has accepted the "very clear and unambiguous" recommendation by Foreign Investment Review Board (FIRB) to block Cosette Pharmaceuticals' acquisition of Mayne Pharma on national interest grounds.
ASX-listed Mayne has paused trading pending a further announcement.
The context: Chalmers said his decision is "entirely consistent" with the FIRB advice, which said the proposal would be contrary to Australia's national interest.
Chalmers said he received "unequivocal advice" from Treasury and FIRB that no conditions could be put in place to adequately mitigate national interest risks, particularly unique risks to the supply of critical medicines.
That advice incorporated views from the Department of Health and Aged Care, the Therapeutic Goods Administration and the South Australian government.