Australian gov't blocks sale of largest cattle operation to foreign companies

Australia's government will not allow the sale of the nation's largest cattle operation, S. Kidman and Co. to foreign buyers, saying it will be against the national interest.

The private-owned company in April said it was looking to sell its cattle operations, which hold an average herd of 185,000 head of cattle, in an effort to raise cash for other businesses.

Rumours have been circulating through the local media that a bidding war has reached over 350 million Australian dollars between two Chinese companies, however the deal's brokers Ernst and Young have remained tight-lipped.

Australia's Treasurer Scott Morrison said in a statement on Thursday that after taking advice from the Foreign Investment Review Board (FIRB), he would not be authorizing the sale of the Kidman operation as it is currently proposed.

The Kidman operation holds approximately 1.3 percent of Australia's total land area and 2.5 percent of Australia's agricultural land.

However 50 percent of one of Kidman's pastoral leases, Anna Creek, is located within the Woomera Prohibited Area (WPA) weapons testing range in South Australia.

Morrison said given the size and significance of the Kidman operation, along with the national security issues associated with WPA testing range, the sale in its current form would be contrary to Australia's national interest.

"Australia welcomes foreign investment where it is consistent with our national interests," Morrison said in a statement. Endit