Australia officially blocks energy grid sale to Chinese companies

Australia has officially blocked the sale of its biggest energy grid to two Chinese companies. The government has rejected the bid by firms State Grid Corp and Cheung Kong Infrastructure […]

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By Jacqueline Echevarria

Australia has officially blocked the sale of its biggest energy grid to two Chinese companies.

The government has rejected the bid by firms State Grid Corp and Cheung Kong Infrastructure Holdings over security concerns.

The decision follows last week’s government decision to put on hold the sale of Ausgrid for these companies.

Australian Treasurer Scott Morrison said: “I have decided that the acquisition by foreign investors under the current proposed structure of the lease of 50.4% of Ausgrid, the New South Wales electricity distribution network, would be contrary to the national interest.

“In making this decision, national interest concerns have been paramount. They relate to the transaction structure as currently proposed and the nature of the assets.”