Australian Ranch Up for Grabs After Chinese Bid Collapses
In a recent statement, Kidman Beef announced they are welcoming fresh offers for the expansive property, following the withdrawal of a Chinese company from the bidding process.
Plans by Chinese firm Dakang Australia to acquire the ranch hit a roadblock when the Australian government expressed its concerns, stating that the deal was detrimental to the national interest. The Australian Treasurer, Scott Morrison, shared his concerns that the sale could hinder local competitors in the market. Dakang was given until Tuesday to address these concerns.
Kidman is confident that dismantling the 120-year-old company would significantly devalue it. The company is one of Australia's largest beef producers, with operations spread across over 100,000 square kilometers of outback land. This is roughly the size of Kentucky. A thorough air inspection of all neighboring properties is estimated to take about a week.
Initially, Kidman had agreed to sell 77,300 square kilometers (30,000 square miles) of its land to Dakang and its Australian partners in Chinese firms.
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Following the government's resistance, some sensitive parts of Kidman's holdings were withdrawn from the deal with the Chinese company. This included the Anna Creek Station in South Australia, which is situated near a weapons testing site.
Dakang declined to comment on Tuesday.
Greg Campbell, CEO of Kidman, found it remarkable that in the first round of sale negotiations, although they collaborated with 130 domestic firms, they did not receive any offers from the Australian conglomerate.
"We remain open to Australian parties expressing interest in acquiring the entire enterprise," Campbell said. He added that he would also welcome offers from companies worldwide, stating that investments from American, Chilean, and New Zealand firms do not require approval from the Australian Foreign Investment Review Board or the Treasurer.
Contributions by Jethro Mullen and Yuli Yang.
Additional Insights:
The large-scale Australian solar energy portfolio, consisting of the 200 MW (dc) Wellington, 400 MW (dc) Wellington North, 107 MW (dc) West Wyalong, 210 MW (dc) Woolooga, and 90 MW (dc) Wunghnu solar farms, may be offered to other potential buyers after Beijing Energy International (BJEI) Australia's withdrawal. Although the specific companies interested in purchasing this portfolio are yet to be identified, it is expected that renewable energy companies or investors with a focus on solar energy will likely show interest. The portfolio's value and strategic location across various Australian states make it an attractive asset for firms seeking to expand their renewable energy capacities.
