Australia formally rejects bids by State Grid and Cheung Kong Infrastructure for Ausgrid
Decision based on unspecified national interests, says top Australian official
Australian treasurer Scott Morrison on Friday officially rejected bids by two Chinese companies in the A$10-billion (US$7.67-billion) sale of the country’s biggest energy grid, Ausgrid, after they failed to overcome security concerns.
Last week, Morrison announced that neither State Grid Corp of China or Hong Kong’s Cheung Kong Infrastructure, the preferred bidders, would be allowed to seal a deal.
Despite incurring the wrath of Australia’s biggest trading partner, Morrison stuck by his decision on Friday, saying it was based on unspecified national interests.
“After due consideration of responses from bidders to my preliminary view of August 11, 2016, I have decided that the acquisition by foreign investors under the current proposed structure of the lease of 50.4 per cent of Ausgrid, the New South Wales electricity distribution network, would be contrary to the national interest,” Morrison said in a statement.
“This is consistent with the recommendation from the Foreign Investment Review Board.”
The decision has caused a rift between Australia and China, just eight months after their A$100 billion free trade agreement took effect.
