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FDI: Entry and ownership rule
On 19 November 2015, Australia's Treasury Minister announced that the country would block the purchase of a 2.5% stake by Shanghai company Pengxin in Australia's largest agricultural company S. Kidman & Co. The Australian company owns ca. 1.3% of the country's land area and 2.5% of its agricultural land.
The Treasurer explained that the purchase worth 350 million AUD would be "contrary to national interest" and he could not allow for the sale "in its current form". He mentioned that Kidman holds inter alia the Anna Creek station, half of which is located in the Woomera Prohibited Area (the world's largest land-based military testing facility).
On 8 March 2016, according to press reports, the Chinese companies resubmitted its bid, this time jointly with the Australian Rural Capital company. The deal would ensure that Pengxin does not hold any stakes involving the Woomera Prohibited Area.
On 29 April 2016, however, the Treasury Minister announced in an official press release that he would not allow the purchase "given the size and significance of Kidman's portfolio". He argued it would not be in line with Australia's national interests.
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