Treasurer Joe Hockey has given the go-ahead to global food giant JBS's $1.45 billion takeover of Primo Group, despite industry concerns.
The Australian Competition and Consumer Commission announced its approval in February.
Mr Hockey announced his conditional approval on Wednesday.
JBS, the Brazilian-listed meat giant is Australia's largest fresh meats processor, proposed to acquire Primo Group, the country's largest ham, bacon and smallgoods manufacturer in November 2014.
But The Nationals, farmers, competing abattoirs, and meat and smallgoods suppliers and customers are worried the acquisition will reduce market competition for fat cattle in northern NSW and Queensland.
The ACCC has said Primo is not a strong competitive constraint on JBS but warned it would monitor the impact of further consolidation of abattoirs.
Mr Hockey said JBS had agreed to maintain the custom service killings now provided by Primo at its processing plant in Scone, NSW.
It would also provide reports to the Foreign Investment Review Board on its compliance every six months, until otherwise advised by the FIRB.
JBS has 10 processing plants in Australia, including in Dinmore and Toowoomba in southern Queensland.
Primo operates five processing plants across Australia as well as New Zealand, employing more than 3000 people, including 150 at Wairarapa-based Premier Beehive.
Its brands include Hans and Primo Quality Meats.
Nationals MPs have previously raised concerns in parliament about the possible approval.
JBS chief executive Brent Eastwood says the acquisition of Primo makes a strong statement about his company's long-term commitment to Australia.
"JBS has a strong track record of investing in its facilities in Australia and our plans for Primo are no different," he said in a statement.
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