Rinehart bid for Kidman cattle empire means lesser role for Chinese firm

SBS World News Radio: Politicians have welcomed the announcement that mining billionaire Gina Rinehart has lodged a bid to take over Australia's biggest cattle holdings.

Rinehart bid for Kidman means lesser role for Chinese firmRinehart bid for Kidman means lesser role for Chinese firm

Gina Rinehart's bid for Kidman means lesser role for Chinese firm Source: AAP

One of the federal government's biggest political nightmares may be over thanks to mining magnate Gina Rinehart making an offer on the Kidman cattle empire.

Ms Rinehart has made a joint $365 million bid with the Chinese company Shanghai CRED.

If it goes ahead, her Hancock Prospecting will own two thirds of S Kidman and Co, and Shanghai CRED will own one third.

It is a significantly smaller stake for the Chinese company than its stake in previous offers rejected by the federal treasurer.

Finance Minister Mathias Cormann has told the ABC there is still a process to go through, though.

"I think it will be great, of course, if we can keep this very significant asset in majority Australian hands, but there's process to go through, and I'll just let this play out."

The sale will need to pass Australia's foreign investment regime and Chinese government approvals.

Labor frontbencher Andrew Leigh has told Sky News the government must ensure the application is thoroughly reviewed.

"The Foreign Investment Review Board does need to appropriately scrutinise every application, and we'll be watching to make sure those processes are appropriately followed."

Politicians have welcomed the announcement because it is likely to keep assets under Australian control.

Independent senator Nick Xenophon says, while he supports the bid, he still wants foreign investment laws tightened.

Senator Xenophon has told the ABC superannuation funds should be targeted.

"Right now, there are $300 billion worth of Australians' savings in superannuation funds invested overseas. Even a sliver of that coming back to Australia, to invest in Australian agriculture, would make a very big difference and would probably defuse this debate."

Deputy Prime Minister Barnaby Joyce has told the ABC he believes the deal could be an appropriate model for any future foreign investment.

Senator Joyce says there is a desire for Australian assets to be owned by Australians.

"I think the Australian people generally want the Australian mum and dad to be the owner of the Australian asset and owner of the Australian house. That might be politically incorrect for some in some quarters, but I don't care. It's one of my core political beliefs that the Australian citizen, the Australian mum and dad, is the owner of the Australian asset as much as we can possibly make them the owner of the Australian asset. They're the ones I go down to Canberra for. And I want to drive around the countryside, drive around the suburbs, saying, 'This is overwhelmingly owned by Australians.'"

One Nation leader Pauline Hanson has celebrated the news on her Facebook page.

She says she has faith in Ms Rinehart's business capabilities and her love for Australia and its assets.

 

 


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By Hannah Sinclair


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