Australia marks CKI offer on pipeline "contrary" to national interest

The Australian treasurer said that the proposed acquisition of the Australian pipeline company APA Group by Hong Kong-based Cheung Kong Infrastructure, worth $ 13.8 billion, would be "contrary to the rule of thumb. "national interest", creating a negative climate for the future of investment relationships. between Australia and China.

The agreement was announced in June and quickly became a test case for the receipt of Chinese investment in Australia, following the formation of a new government body to review inward investment.

Under the leadership of the United States, governments around the world have been paying more attention to Chinese investment over the last two years. CKI, founded by Asian magnate Li Ka-shing, is not a China-based company and many observers believe that the government has confused Hong Kong society with Chinese groups.

The Australian Commission for Competition and Consumers said in September that it would not block the deal. But Australian Treasurer Josh Frydenberg said in a statement Wednesday that his negative opinion on the deal had been formed with the advice of the Foreign Investment Control Board (FIRB) and the Center for Critical Infrastructure.

Mr. Frydenberg said: "The FIRB has not been able to reach a unanimous recommendation, expressing its concerns about the aggregation and the national implications of such a foreign actor. dominant in the gas and electricity sectors in the long term ".

But he also said the investments of Cheung Kong-related groups were welcome in Australia: "The Australian Government Welcomes CK Group Investments in Australia and Its Broader Contribution to the Australian Economy."

Bankers and lawyers who followed the agreement said the result would set the tone for investment relations between Australia and China for years to come.

"We have taken advantage of the resource boom, driven entirely by China, but we are now falling behind the US and say we do not want China anymore," said a Sydney-based negotiator. .

The offer on APA was led by CKI, but also included CK Asset and Power Assets. CKI and CK Asset are controlled by CK Hutchison, the Hong Kong-based trading empire's holding company, built by Li Ka-shing, who resigned in early May at the age of 89, giving up reins to his eldest son Victor.

CKI did not immediately respond to a request for comment on the matter.