The Australian government intends to block an AUD13bn (US$9bn) takeover bid by the CK Group consortium (a Hong Kong and Chinese consortium) for the domestic energy infrastructure company APA Group due to conflicts with Australia's national interest. The final decision is expected in two weeks.
APA Group owns and operates natural gas and electricity assets in Australia. It operates approximately 15,000 km of gas pipelines connecting 1.3 million Australian homes and businesses. It also has stakes in gas storage facilities, gas-fired power stations and renewable energy power generation projects (wind and solar parks).
The acquisition would make CK Group, led by Cheung Kong Infrastructure Group, the largest pipeline player in the country. It would result in an undue concentration of foreign ownership by a single company group in the Australian gas transmission market. The takeover was previously approved by the Australian Competition and Consumer Commission in September 2018.
In August 2016, the government of New South Wales decided to block the sale of a 50.4% stake in the regional electricity distribution system operator Ausgrid to foreign bidders, citing "national security concerns". China's dominant power distributor State Grid and Hong Kong's Cheung Kong Infrastructure Holdings had been the only two bidders for Ausgrid.