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http://www.news.com.au/finance/busi...y/news-story/0662f97d8d7692366aff8f331f0b0242
TREASURER Scott Morrison has kyboshed the $371 million sale of Australia’s largest private landholder, S Kidman and Co, to a Chinese company.
“I have today informed the investor that my preliminary view of the proposal that has been put to me is contrary to the national interest,” he told reporters in Canberra.
Mr Morrison blocked the sale of Kidman for a second time, after he decided to reject a Chinese-led offer in November last year.
Back then, issues were raised around the size of the landholding which includes 10 cattle stations on 101,000sq km.
The close location of Kidman’s Anna Creek station to the Woomera weapons testing range in South Australia was also cited as a concern.
S. Kidman & Co Ltd is Australia’s largest private property and one of the nation’s biggest beef producers with a herd of 185,000 cattle. The company has pastoral leases covering 101,000 square kilometres in three states and the Northern Territory. Kidman cattle stations produce grass-fed beef for export to Japan, the USA and South East Asia.
The Kidman portfolio is the largest private land holding in Australia covering about 1.3 per cent of the nation’s total land area, and 2.5 per cent of its agricultural land.
Even after the excision of Anna Creek and The Peake properties, Kidman would still be Australia’s largest private land owner and hold over one per cent total land area, and two per cent of agricultural land.
Austalia’s biggest meat producers, S Kidman & Co Ltd, loading cattle at the Helen Springs Station, one of the company’s 13 farms.Source:Supplied
“My preliminary view of the proposal that has been put to me is contrary to the national interest,” Mr Morrison said of the 80 per cent interest in Kidman Dakang wants to acquire.
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Nor had a revised sale proposal satisfied his concerns.
The size and significance of the portfolio, combined with the impact the decision may have on broader Australian support for foreign investment in agriculture, must also to be taken into account in this case, the treasurer said.
“Australia welcomes foreign investment, however we must be confident that this investment is not contrary to the national interest.”
But Mr Morrison has left the door open to approving the sale of S Kidman and Co after consideration of an external and independent review of the sale process.
While the review found the sale process followed a satisfactory commercial practice that offered opportunity to Australian parties to make an offer, it also found there was significant domestic interest in Kidman.
“I have concerns that the form in which the Kidman portfolio has been offered as a single aggregated asset, has rendered it difficult for Australian bidders to be able to make a competitive bid,” Mr Morrison said.
“The size of the asset makes it difficult for any single Australian group to acquire the entire operation.”
Mr Morrison has given Dakang Australia Holdings Pty Ltd until next Tuesday to respond to his concerns.
TREASURER Scott Morrison has kyboshed the $371 million sale of Australia’s largest private landholder, S Kidman and Co, to a Chinese company.
“I have today informed the investor that my preliminary view of the proposal that has been put to me is contrary to the national interest,” he told reporters in Canberra.
Mr Morrison blocked the sale of Kidman for a second time, after he decided to reject a Chinese-led offer in November last year.
Back then, issues were raised around the size of the landholding which includes 10 cattle stations on 101,000sq km.
The close location of Kidman’s Anna Creek station to the Woomera weapons testing range in South Australia was also cited as a concern.
S. Kidman & Co Ltd is Australia’s largest private property and one of the nation’s biggest beef producers with a herd of 185,000 cattle. The company has pastoral leases covering 101,000 square kilometres in three states and the Northern Territory. Kidman cattle stations produce grass-fed beef for export to Japan, the USA and South East Asia.
The Kidman portfolio is the largest private land holding in Australia covering about 1.3 per cent of the nation’s total land area, and 2.5 per cent of its agricultural land.
Even after the excision of Anna Creek and The Peake properties, Kidman would still be Australia’s largest private land owner and hold over one per cent total land area, and two per cent of agricultural land.
Austalia’s biggest meat producers, S Kidman & Co Ltd, loading cattle at the Helen Springs Station, one of the company’s 13 farms.Source:Supplied
“My preliminary view of the proposal that has been put to me is contrary to the national interest,” Mr Morrison said of the 80 per cent interest in Kidman Dakang wants to acquire.
–– ADVERTISEMENT ––
Nor had a revised sale proposal satisfied his concerns.
The size and significance of the portfolio, combined with the impact the decision may have on broader Australian support for foreign investment in agriculture, must also to be taken into account in this case, the treasurer said.
“Australia welcomes foreign investment, however we must be confident that this investment is not contrary to the national interest.”
But Mr Morrison has left the door open to approving the sale of S Kidman and Co after consideration of an external and independent review of the sale process.
While the review found the sale process followed a satisfactory commercial practice that offered opportunity to Australian parties to make an offer, it also found there was significant domestic interest in Kidman.
“I have concerns that the form in which the Kidman portfolio has been offered as a single aggregated asset, has rendered it difficult for Australian bidders to be able to make a competitive bid,” Mr Morrison said.
“The size of the asset makes it difficult for any single Australian group to acquire the entire operation.”
Mr Morrison has given Dakang Australia Holdings Pty Ltd until next Tuesday to respond to his concerns.
