A consortium of Australia's biggest graziers is dropping its bid for the S. Kidman and Company cattle empire after mining magante Gina Rinehart's joint venture with Chinese interests the largest bidder, Australian Outback Beef, upped its bid by a half million dollars.

"We are disciplined investors in Australian rural assets and made what we believed to be a full and fair offer," read the statement from BBHO.  "After what has been a lengthy and complex sales process, we congratulate the Hancock Shanghai CRED consortium for similarly recognizing the potential of the iconic Kidman brand."

BBHO's partners included South Australian Tom Brinkworth, Malcolm Harris from New South Wales and Viv Oldfield from Alice Springs.  They represent families that control extensive land and stock holdings across Australia.  Opposition Leader Bill Shorten congratulated the BBHO consortiumand says he admires "those who are willing to invest in the future of the cattle industry".  

S. Kidman wants to sell to Australian Outback Beef, but it will be up to the government and regulators in Beijing to approve the deal which gives 33 percent ownership of the company to China's Shanghai CRED.  Should those bodies fail to be convinced, Rinehart says her Hancock Prospecting will go it alone. 

"I am from a station background, having grown up on the Mulga Downs and Hamersley stations, both in the outback," Ms. Rinehart said in a statement.  "I stand behind the bid and should the FIRB or PRC (People's Republic of China) approvals not be achieved, then Hancock will proceed with the acquisition on a 100 percent basis."