Scott Morrison, treasurer of the Australian government, said in a statement on Thursday 19 November that the acquisition by foreign investors of S Kidman and Co Limited “would be contrary to the national interest” and that he “shall not be authorising the sale to proceed as currently proposed”.

Two Chinese companies, Genius Link Group and Shanghai Pengxin, were reportedly engaged in a $249m bidding war over the holdings, which is home to the biggest cattle station on the globe.

In his statement, Morrison explained that Australia is opposing the sale on the basis of a recommendation from Australia’s foreign investment review board (FIRB). The FIRB made the recommendation due to the fact that around 50% of one of Kidman’s stations, the Anna Creek, is located in the Woomera Prohibited Area (WPA) in South Australia.

Morrison said: “The WPA weapons-testing range makes a unique and sensitive contribution to Australia’s national defence and it is not unusual for governments to restrict access to sensitive areas on national security grounds. Given the size and significance of the total portfolio of Kidman properties, along with the national security issues around access to the WPA, I have determined, after taking advice from FIRB, that it would be contrary to Australia’s national interest for a foreign person to acquire S Kidman and Co in its current form.”

The treasurer also noted that following communication of his decision to prevent the sale, all bidders to acquire S Kidman and Co Limited withdrew their FIRB applications.

He concluded by saying that Australia “will continue to welcome and support foreign investment that is not contrary to our national interest”.

Kidman is Australia’s largest private land owner and holds approximately 1.3% of Australia’s total land area and 2.5% of the country’s agricultural land. It has 10 cattle stations, including properties across regional South Australia, Western Australia, the Northern Territory and Queensland, covering 101,411km2 and managing a long-term average herd of 185,000 cattle. It went up for sale earlier this year.

The collection of 10 vast outback properties owned by S Kidman and Co Limited was amassed more than 100 years ago by Australian pastoralist Sir Sidney Kidman, to whom the internationally renowned Australian actress Nicole Kidman is a distant relation.

Australia prevents sale of its largest farm to foreign investors

The Australian government has opted to prevent selling one of the world's largest private stretches of land to foreign investors, citing a clash with Australia's national security interests.