Deal on hold: Chinese-led group’s bid to buy iconic Australian cattle empire stumbles

The Australian government is deferring until after an upcoming federal election a politically sensitive decision on whether to allow the sale of one of the country’s biggest cattle empires, S. Kidman & Co, to a Chinese-led consortium.

Australian Treasurer Scott Morrison rejected a previous foreign-led offer for the ranching company - which owns agricultural lands equivalent in size to South Korea – just six months ago on the grounds of national interest.

Ownership of farmland is a sensitive issue in Australia amid concerns that foreign buyers are snapping up properties to cash in on a boom in food demand from Asia.

Morrison said the current A$371 million (US$288 million) offer, led by China’s Hunan Dakang Pasture Farming Company and Shanghai CRED Real Estate Stock Company, would be subject to an extensive independent review taking up to 90 days.

That means a decision by the Foreign Investment Review Board (FIRB) and the treasurer would likely come after a federal election expected to be held on July 2.

“It is a very big transaction and it is important we do the right thing by the national interest and that’s what I intend to do,” Morrison told reporters in Canberra.