Australian government blocks foreign sale of largest cattle farm property, cites national security concerns

The Australian government has announced that it would block the proposed sale of the largest cattle property in the country if it is sold to a foreign buyer.

The announcement came from Treasurer Scott Morrison who said the government is against the sale of Australia's largest cattle property portfolio owned by S. Kidman & Co to a foreign buyer.

In a statement, Morrison said he decided to act against the acquisition of the company by a foreign buyer as it would go against the national interest, the ABC News reports.

The treasurer cited the weapons testing range within the Woomera Protected Area in close proximity to the cattle ranch as the main reason. According to Morrison, the area makes a unique and sensitive contribution to the country's national defence and it is natural for governments to restrict access to sensitive areas on grounds of national security.

“Given the size and significance of the total portfolio of Kidman properties, along with the national security issues around access to the WPA, I have determined, after taking advice from FIRB (Foreign Investment Review Board), that it would be contrary to Australia's national interest for a foreign person to acquire S. Kidman and Co. in its current form,” Morrison said in a statement.

Speculations on sale

Rumours were rife that a potential buyer is negotiating a deal. But the Kidman family and the facilitators, Ernst and Young were not forthcoming on the negotiations. There were also reports of a bidding war between China's Genius Link Group and another Chinese company Shanghai Pengxin for the vast cattle enterprise, as the suitors were differing on a deal price above $350 million.

Largest land holder

S. Kidman & Co is Australia's largest private landholder and owns properties in an area of 101,000 square kilometres spread in Western Australia, South Australia, the Northern Territory and Queensland.

It was founded by Sir Sidney Kidman in 1899. Over the decades, it has grown into one of the largest beef producers. It is a major supplier in markets of Japan, the United States and South-East Asia. Spread in 10 cattle stations, the company has an average herd of 185,000 cattle, reports Reuters.

Kidman’s reaction

In his reaction, S. Kidman & Co's managing director, Greg Campbell, said the company has already made sure that all potential buyers are done with due diligence on matters involving national security.

“We certainly were well aware and made potential buyers for the business aware that they had to make applications to the Department of Defence in relation to the purchase of the part of Anna Creek that is within the Woomera rocket range," Campbell said.

He said the shortlisted buyers who have made applications are aware that the Department of Defence holds the right of veto over potential owners of land within the Woomera rocket range.

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