Shanghai Pengxin, the owner of New Zealand's Crafar Farms, has had its plans to buy vast swathes of Australian cattle farming land scuppered by that country's government, partly as a result of national security concerns.
The Chinese firm - whose bid to purchase Lochinver Station near Taupo was blocked by New Zealand Government ministers in September - was in talks to buy S Kidman and Co, Australia's largest private land owner.
Kidman owns 10 cattle stations across South Australia, Western Australia, the Northern Territory and Queensland.
The properties account for 2.5 per cent of Australia's agricultural land, totaling 101,411 sq km with an average herd of 185,000 cattle.
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But in a statement treasurer Scott Morrison said the purchase would be "contrary to the national interest" and he would not be authorising the deal to proceed "as currently proposed".
Anna Creek, one of Kidman's stations, is Australia's largest single property holding.
Morrison said 50 per cent of the Anna Creek pastoral lease was located in the Woomera Prohibited Area (WPA) weapons testing range in South Australia.
"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 [the 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Morrison said that, following his decision, all of the bidders for Kidman had withdrawn their FIRB applications.
"Australia welcomes foreign investment where it is consistent with our national interests," he said.
"Foreign investment rules facilitate such investment while giving assurance to the community that the investment is being made in a way which ensures that Australia's national interest is protected."