Hockey gives Japan Post nod to buy Toll

Treasurer Joe Hockey has approved the proposed sale of Toll Holdings to Japan Post.

"The government welcomes foreign investment where it is not contrary to our national interest," Mr Hockey said in a statement on Thursday.

Toll is Australia's largest logistics firm employing around 40,000 people, with operations in road, rail, sea, air and warehousing in 55 countries.

Japan Post is a public corporation that provides postal services in Japan.

"Foreign investment has helped build Australia's economy and will continue to enhance the wellbeing of Australians by supporting economic growth and prosperity," Mr Hockey said.

Toll said the process for other approvals was underway and would be reported to the ASX in due course.

"We are pleased that Japan Post's bid has gained FIRB approval," company chairman Ray Horsburgh said in a statement.

"The offer is compelling for Toll's shareholders and this is an exciting time for Toll and its employees."

Shareholders will vote on the decision at an EGM in May.