Treasurer Scott Morrison is signalling he will reject another attempt by a foreign entity to purchase Australia's single largest landholding, the S. Kidman and Company cattle empire, on the grounds it would be "contrary to the national interest".

The Chinese-led consortium Dakang Australia put in a AU$371 Million bid for the operation, which would have included a total of 74,000 square kilometers and 180,000 cattle.  But Dakang tried to make the proposal more palatable to Australia by excluding Kidman's largest property, Anna Creek, which is too close for comfort to the Woomera weapons testing range in South Australia.

"Even after the excision of Anna Creek and The Peake properties, Kidman will still be Australia's largest private land owner and hold over one percent of Australia's total land area, and two percent of Australia's agricultural land," said Mr. Morrison.  "Given the size and significance of the Kidman portfolio I am concerned that the acquisition of an 80 percent interest in S. Kidman and Co. Limited by Dakang Australia Holdings Pty Ltd may be contrary to the national interest."

Investors have until next Tuesday, 3 May, to decide how to respond.

Mr. Morrison rejected an earlier offer to buy the Kidman in November, one that was also Chinese-led.  It would have been for the entire operation, including Anna Creek.