The Australian government has rejected a $13 billion bid by Hong Kong-based CK Group for the country’s largest natural gas pipeline operator.
In June, CK Group launched a bid for APA Group, the owner of 15,000 km of gas pipelines across New South Wales, Victoria and the Northern Territory.
Treasurer Josh Frydenberg said he blocked the deal because “it would result in a single foreign company group having sole ownership and control over Australia’s most significant gas-transmission business.”
In a statement released on Wednesday, CK Group confirmed that the acquisition will not proceed.
Frydenberg said the government will continue to welcome foreign investment into the country that is not “contrary to our national interest”.
Two years ago, the Coalition government also blocked CK Group’s bid to take over NSW electricity distributor Ausgrid. However, the group’s $7.4 billion acquisition of power company DUET Group was approved last year.