Australia: China firm may buy AUS$1 bn. in fa...

China firm may buy AUS$1 bn. in farmland

Miroslaw /

CHINA, Shanghai. A Chinese real estate, infrastructure and agriculture conglomerate could become the biggest owner of farmland in Australia. Shanghai's PengXin Group is bidding for two huge companies that are being sold separately: Consolidated Pastoral Company and S. Kidman & Co.

Buying both could cost more than AUS$1 bn. and allow PengXin to create a cattle powerhouse that would own more than 1% of the Australian continent.

PengXin would use Consolidated Pastoral Company's cattle stations in Northern Territory, Queensland, and Western Australia's north to supply beef to Asia. South Australia's Kidman & Co would provide meat for the Australian market.

The geographic diversity could help during droughts.

PengXin became the third-biggest dairy group in New Zealand through buying up smaller companies in a similar plan to its plan for CPC and Kidman.

The deal could emerge as a test of Australia's openness to foreign investment and influence diplomatic relations with Beijing.

Source: PengXin


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