S. Kidman, Australia’s largest pastoral cattle company, has agreed to be acquired by a Chinese-led consortium of Chinese and Australian buyers for $370.7 million (US$287.3 million), according to the Wall Street Journal. The buyers consist of Dakang Australia Holding, a subsidiary of Shanghai Pengxin Group – the same group that was denied approval for the purchase of S. Kidman last year by the Australian government on the grounds that the deal was contrary to national interest, and ASX-listed Australian Rural Capital (ARC). Under the terms of the deal, Dakang would hold an 80% stake in Kidman, while ARC would control the remaining 20%.

Shanghai Pengxin first ventured into agriculture with the N$200 million purchase of 16 dairy farms across New Zealand, however, its offer of A$325 million made last year for S. Kidman was rejected by the Foreign Investment Review Board (FIRB) due to the fact that one of the company’s properties – the 23, 677 square kilometer Anna Creek station, was adjacent to the politically sensitive Woomera weapons testing range.  Under the terms of the revised offer, Anna Creek will not be included in the sale in order to satisfy Australian regulators.

Established in 1899 by Sidney Kidman, the company has grown to run 185,000 head of cattle on 101,000 square kilometers of land, or 1.3% of the land area of the country, stretching across Queensland, South Australia, Western Australia, and the Northern Territory.

Under the terms of the deal, Dakang Australia and ARC will retain the S. Kidman home office in Adelaide, and will jointly manage the development and planned growth of the S. Kidman business. Together, the buyers plans to invest a further $46.3 million within the first year of ownership on capital improvements and livestock purchases, reports Farm Weekly. In addition, a five-year plan will be created in partnership with the current management team at S. Kidman focused on both domestic and offshore opportunities for growth.

Using Dakang and Shanghai Pengxin’s existing supply chain presence in Asian markets, the partnership plans for S. Kidman to evolve into a global brand for beef, and for it to be a vehicle through which Australian investors can leverage long term opportunities that come with growing demand for Australian beef in Asia.

The offer, which is scheduled to close on August 5, still requires a vote of approval from the board and shareholders of Shenzhen-listed Hunan Dakang Pasture Farming Company which is 55% controlled by Shanghai Pengxin, and requires formal approval from Australia’s Foreign Investment Review Board (FIRB).

However, Australian Treasurer, Scott Morrison, has issued an interim order delaying the transaction for 90 days “to consider the national interest implications of this complex and sensitive acquisition,” according to The Guardian, which points out that the delay will push a decision regarding the deal until after the upcoming election on July 2.