Several Chinese companies are joining a bid to buy a parcel of Australian land encompassing a number of cattle ranches which would help bring Australian agricultural products to Chinese consumers.
Experts said that the deal would be advantageous to both sides, given China's huge market for agricultural products and Australia's abundant agricultural resources.
The news portal thepaper.cn reported on Monday, Oct.12, that seven Chinese firms are involved in a bid to purchase a 100,000-square-kilometer piece of land in the Australian outback, home to nearly 200,000 cattle and several hectares of cattle ranches, including the world's largest cattle ranch, Anna Creek. The holding was offered for sale in April by the parcel's holder, S. Kidman & Co.
The report said that the firms include Donlinks Grain and Oil Co., Shanghai Pengxin, two other private companies, and a consortium of three firms led by Shanghai CRED.
A Donlinks representative confirmed to the Global Times on Monday that the company is partnering with British Virgin Islands-registered Genius Link Capital to bid for the property.
A statement to the Shenzhen Stock Exchange released on Sept. 30 said that Donlinks will hold a 51-percent stake in S. Kidman if its bid is successful.
Experts believe that Chinese consumers will benefit in the bid if a Chinese company wins, the report added.
Ma Wenfeng, an analyst with the Beijing Orient Agribusiness Consultant Co., said that if Chinese firms operate the ranch, it would help bring more agricultural products like beef to the huge Chinese market, helping consumers.
Aside from serving as a cattle ranch, the vast property could also serve as a base through which Chinese companies can import other Australian agricultural products to China, Ma said. He added that the arrangement will provide Chinese consumers with more options at the supermarket.
Li Xiaogang, director of the Foreign Investment Research Center at the Shanghai Academy of Social Science, believes the benefits go both ways.
"This is not only good for Chinese consumers, it is in the interest of Australians as well," Li told the Global Times, noting that Australia would benefit from the vast Chinese market through the deal.
Li said that the deal would further expand the trade relationship between the two countries, as China is a major importer of Australian goods.
The Australian Broadcasting Corporation (ABC) reported on Friday, Oct.9, citing a statement from S. Kidman managing director Greg Campbell, that the bidding results would be announced as early as next month.