RSS
Twitter
Linked In
News In
News
Linked In
RSS
https://twitter.com/Agrimoney
http://www.newsnow.co.uk/h/Industry+Sectors/Agriculture

You are viewing 1 of your 2 complimentary articles.

Register now to receive full access.

Already registered?

Login | Join us now

Australia delays ruling on $290m China-backed mega-ranch deal

Twitter Linkedin

Australia's government delayed for 90 days ruling on a second attempt by Chinese investors to buy the giant S Kidman & Co estate, for aus$370.7m ($290m), delaying until after general elections what could be a controversial decision.

Scott Morrison, Australian treasurer, said that the government had issued an interim order to delay the transaction "to consider the national interest implications of this complex and sensitive acquisition".

"I want to be absolutely confident when I finally consider this matter that Australians have had every opportunity to be participating in that process," Mr Morrison said.

"National interest considerations of proposed transactions should not and will not be rushed on an important matter such as this."

The delay will take a decision beyond the July 2 date of general elections.

Second attempt

The comments follow S Kidman & Co's agreement on Monday to a revised bid from Chinese investors including real estate group Shanghai Pengxin, after an initial offer, reportedly valued at more than Aus$350m, was rejected by Mr Morrison in November.

Mr Morrison justified the refusal in part on grounds that part of the S Kidman & Co estate, in South Australia, was next to a military testing station, adding that he had also acted after taking advice from the official Foreign Investment Review Board (Firb).

"Given the size and significance of the total portfolio of Kidman properties along with the national security issues… I have determined… that it would be contrary to Australia's national interest for a foreign person to acquire S Kidman and Co in its current form," he said at the time.

However, S Kidman & Co – which controls more than 100,000 square kilometres of land, and owns some 185,000 head of cattle – said this week that it had "complied with all requests that have been made by the Firb".

'Keep Australia for Australians'

The revised consortium also includes, besides Shanghai Pengxin-controlled Hunan Dakang Pasture and Shanghai CRED Real Estate, an Australian investment group, Australian Rural Capital.

Under the deal, Australian Rural Capital, which is listed in Sydney, will purchase a 20% stake in S Kidman & Co.

Even so, despite the Australian participation, the revised proposal has attracted opposition over concerns over the extent of Australian land being snapped up by foreign, and largely Chinese, investors.

National Party senator John Williams said on Wednesday that the government should "keep Australia for Australians".

'Significant investment'

Malcolm Turnbull, Australia's prime minister, said that the proposed deal should be scrutinised very carefully Firb officials, to ensure its benefited Australia's national interest.

"Where [foreign investment] is not contrary to national interest, it's able to proceed," he said.

S Kidman said that the "significant investment proposed by the consortium will see an increase in production, and the expansion of international markets for Kidman beef".

"We believe the sale will secure the long-term future of the Kidman enterprise."

By Agrimoney.com

Twitter Linkedin
Related Stories

Festive staff shortages 'likely' as British growers cut ties with UK supermarkets

Faced with mounting concerns over labour shortages and fears they may not be able to fulfil retailer contracts, some British growers have sought to cut ties with UK supermarkets in favour of companies elsewhere in Europe.

Hard Brexit to have 'catastrophic' effect on European meat industry; new report

A hard Brexit will have a ‘catastrophic impact’ on the European meat industry, according to a report published by Europe’s meat industry body, UECBV, as the UK and EU continue negotiations.

Manufacturers stockpile agrochemicals in bid to keep post-Brexit prices down for farmers

Manufacturers of crop protection products are stockpiling agrochemicals in warehouses in a bid to keep input costs down for farmers after Brexit, according to the chief executive of the Crop Protection Association, Sarah Mukherjee.

'Record number' of farms coming to market in top New Zealand dairy areas

Reinz flags "evidence" of a surge in farm listings, for reasons such as poor weather, and worries over a milk price retreat
Home | About | RSS | Commodities | Companies | Markets | Legal disclaimer | Privacy policy | Contact

Our Brands: Comtell | Feedinfo | FGInsight

© Agrimoney.com 2017

Agrimoney.com and Agrimoney are trademarks of Agrimoney Ltd
Agrimoney is part of the Briefing Media group
Agrimoney Ltd is registered in England & Wales. Registered number: 09239069