Kidman sale to Chinese interests delayed
The Federal Treasurer Scott Morrison has delayed any potential sale of the Kidman & Co cattle empire to Chinese interests until after the federal election so as to thoroughly assess the transaction’s national interest merits.
It was revealed Australian Rural Capital (ARC) was providing a 20 per cent local stake in a Chinese-led joint-venture deal to buy the massive pastoral business which covers 2.5 per cent of the nation’s agricultural land for $370 million.
Shanghai Pengxin would indirectly control 80pc of the business that currently covers about 11m hectares in Queensland, SA, NT and WA.
The offer needs Foreign Investment Review Board (FIRB) approval and Mr Morrison’s consent.
He’d signed an order last Friday which prohibits the Kidman transaction from proceeding for a period of 90 days from the gazetted date, meaning any final call of Kidman is likely to occur after polling day.
Mr Morrison said the order provided further time for him to consider the national interest implications “of this complex and sensitive acquisition”.
“My obligation is to make careful and detailed assessments of foreign investment proposals against the national interest and that is exactly what I intend to do on the Kidman matter as I did on the previous consideration of that transaction,” he said.
“National interest considerations of proposed transactions should not and will not, on my watch, be rushed, on important matters such as this.”
