Australia blocks Chinese firm from stake in electricity grid

[third eye]

http://www.bbc.com/news/business-37043119

Australia's government has preliminarily blocked Chinese and Hong Kong bidders from taking a controlling stake in the country's largest electricity network, citing worries over national security.

In a statement to the media, the Australian Treasurer Scott Morrison has said the foreign investment proposals from Chinese and Hong Kong bidders "were contrary to the national interest."

China's State Grid Corp and Hong Kong's Cheung Kong Infrastructure Holdings (CKI) were attempting to buy a 50.4% controlling stake in Ausgrid, which is New South Wales's electricity distribution network - the largest in the country.

State Grid Corp has not commented so far on the blocking of this sale, but undoubtedly the reaction in Chinese media will be one of outrage.

Hong Kong's Cheung Kong Infrastructure Holdings, owned by HK billionaire Li Ka-shing, has distanced itself from this rejection.

In a statement to the BBC it said: "We believe that the Australian government must have reasons beyond the obvious which led them to make today's announcement. The issue is unrelated to CKI."

Australia's move comes as the UK has postponed approval for the Hinkley Point nuclear power project, in which China's General Nuclear Power Corporation will have a minority stake, on similar concerns.

Image captionMr Morrison said the project was "contrary to the national interest"
The power grid sale, which is reportedly worth around $7.5bn (£5.8bn), would have allowed the Chinese and Hong Kong bidders to acquire the controlling stake in Ausgrid for 99 years.

Ausgrid was appealing to international investors because it is seen as yielding stable and positive returns.

Chinese companies have been on a global acquisition spree, buying up resources and power firms in Asia as I've been reporting. Take the Edra asset in Malaysia for example, which was also not without controversy.

But Australia's Mr Morrison said that during the review process, national security issues were identified in critical power and communications services that Ausgrid provides to business and governments.

Mr Morrisson said the bidders need to address these concerns, and that they have until 18 August to submit their proposals to him, at which time a final decision will be made on the project.

 

[jkroo]

Block for national interest, good excuse, hehe. I have no problem for it.

Things turns very interesting and I will treat it as a good signal for they set-up a loser's mind so earlier.

 

[Chinese-Dragon]

Their country, their rules.

There are plenty of other places for Chinese/HK investors to invest in. It's not a charity, we are looking to make a return on our investment.

The irony though is that Britain is fine with China building nuclear reactors for them, yet Australia is still skeptical.

 

[MarkusS]

Their country, their rules.

There are plenty of other places for Chinese/HK investors to invest in. It's not a charity, we are looking to make a return on our investment.

The irony though is that Britain is fine with China building nuclear reactors for them, yet Australia is still skeptical.

as far as i know new pritish PM May blocked the deal with the nuclear reactors.

 

[Chinese-Dragon]

as far as i know new pritish PM May blocked the deal with the nuclear reactors.

"Postponed" as far as the reports show.

Like I said, this is investment not charity. We are looking to make money, if someone doesn't want the deal then we'll just move on to the next one.

 

[jkroo]

"Postponed" as far as the reports show.

Like I said, this is investment not charity. We are looking to make money, if someone doesn't want the deal then we'll just move on to the next one.

That's it. Cash in hand is more important.

The word charity let me think about the entertainment/service industry.

And one person can block such a deal?

 

[billyong]

as far as i know new pritish PM May blocked the deal with the nuclear reactors.

I will laugh so hard if that's the case! According to their own news and people, David Cameron had suck up and humiliated countless time to strike that deal.

Britain 'sucking up' to China is a national humiliation, says PM's former adviser

 

[neem456]

Didn't the chinese official mouthpiece media said a very bad words for australia few days ago ?
I guess reward for being rude is not supposed to be pleasant.

 

[Steve781]

It simply isn't wise to let foreign companies own something so vital. I have no doubt people are more worried when it's the Chinese then when it's the Americans but the principle is the same regardless in my view.

 

[terranMarine]

as far as i know new pritish PM May blocked the deal with the nuclear reactors.

You may have to get some new glasses

http://www.nytimes.com/2016/08/02/w...clear-plant-angers-china-and-france.html?_r=0

"The sudden choice of Prime Minister Theresa May not to sign the deal but to take until the autumn for further study, reportedly on security and economic grounds, has angered both Paris, which will be crucial to Britain’s future relations with the European Union after the country’s vote to leave the bloc, and Beijing, which Mr. Cameron had cultivated aggressively for investment and trade ties despite criticism that he was subordinating human rights and geopolitical concerns to commerce."

I can assure you if Theresa May CANCELS the deal France and China will punish UK so hard that Bitch will crawl on her knees begging for forgiveness. The French aren't happy already with the Brexit and adding this up you think both countries wouldn't give the British a very tough time? With China's economic muscle you think UK can escape any damage now that it has left the EU ?

 

[MarkusS]

You may have to get some new glasses

http://www.nytimes.com/2016/08/02/w...clear-plant-angers-china-and-france.html?_r=0

"The sudden choice of Prime Minister Theresa May not to sign the deal but to take until the autumn for further study, reportedly on security and economic grounds, has angered both Paris, which will be crucial to Britain’s future relations with the European Union after the country’s vote to leave the bloc, and Beijing, which Mr. Cameron had cultivated aggressively for investment and trade ties despite criticism that he was subordinating human rights and geopolitical concerns to commerce."

I can assure you if Theresa May CANCELS the deal France and China will punish UK so hard that Bitch will crawl on her knees begging for forgiveness. The French aren't happy already with the Brexit and adding this up you think both countries wouldn't give the British a very tough time? With China's economic muscle you think UK can escape any damage now that it has left the EU ?

This is about security. Giving a foreign power control over electriicity is not good and i think we can agree

 

[terranMarine]

This is about security. Giving a foreign power control over electriicity is not good and i think we can agree

Tell that to France and China dude and UK shall suffer

 

[Beast]

This is about security. Giving a foreign power control over electriicity is not good and i think we can agree

Security to a certain extent. If your country start earning less and has no money to cover expenditure and collapse like Greece and Venezuela. What's there to talk about security?

 

[CAPRICORN-88]

Well for one, I agree that Australia should protects its national and strategic interest but they have to do it by

1. passing a national bill banning its sales to foreigners and not China alone.

2. takeover and make it a government owned project.

Without all these above, it will be grossly unfair for companies wishing to acquire these strategic assets.

That is why Mr.Li Ka Shing do not want to comment. The issue is far too hot POLITICALLY.

Ther TRUTH is USA and its allies like Australia FEAR a rising China.

 

[dy1022]

it's ok, China will do something badly to hurt Aus' economy laterly!

let's see who is crying at the end!