Australia blocks sale between largest farm owner and foreign investors

Malcolm Turnbull has emphatically stated that the Darwin port facilities are not used by the military, despite the port corporation’s own advertising making reference to a “defence vessel facility” within the lease area.

The United States was reportedly taken by surprise by the deal, with the Australian Financial Review reporting that President Barack Obama chided Mr Turnbull in Manila for not being consulted about the deal and requested that Australia “let us know next time”.

The $506m deal, resulting from a tender process begun in 2014, gives the Landbridge Group 100% operational control of the port and 80% ownership of the Darwin port land, facilities of East Arm wharf including the marine supply base, and Fort Hill wharf.

“The government is going to have to back off on this”, Mr Katter said on Friday.

Powerful crossbench Senator Nick Xenophon issued draft terms for an urgent Senate inquiry into the deal, accusing the government of double standards after Mr Morrison blocked the S. Kidman and Co sale.

The deal was not formally reviewed by the Foreign Investment Review Board, as states and territories can sell land to foreign investors without the need for FIRB approval under certain conditions.

The privately owned company said in April it was looking to sell its cattle operations, which hold an average herd of 185,000 cattle, to raise cash for other businesses and investments.

Mr Morrison’s ruling blocks competitive bids from Chinese companies such as Genius Link Assets Management and Shanghai Pengxin on the grounds that the Kidman holdings include Australia’s largest cattle station, Anna Creek, which is near the Woomera weapons testing range in outback South Australia.

Meanwhile, the Northern Territory News praised Turnbull for telling Obama to subscribe.

“(Defence) sure did their homework as you’d expect them to do”, Mr Turnbull said.

Turnbull denied it was a regretful decision when asked why a review of the foreign investment rules was being conducted if everything was fine with the Darwin port lease. “Clearly, it makes sense for all foreign acquisitions of the relevant size to be subject to the same process”, he told reporters in Darwin.

The prime minister said the Northern Territory government had done the right thing by consulting with the Department of Defence, which had advised the lease of the port could proceed.