The Australian Government has agreed to sell the country's largest dairy, the Tasmanian Land Company (TLC) to Chinese investor Lu Xianfeng for $202m.
The sale of the company, which includes 30,000 dairy herd across 25 farms, aims to end hostile Sino-Australian relations on the island of Tasmania, as well as provide sufficient food supplies to the Asia-Pacific region.
Australian treasurer Scott Morrison states the sale of Van Diemen's Land Company to billionaire Lu Xianfeng and his Australian unit Moon Lake was approved subject to cut tax minimisation by foreign firms.
Morrison was quoted by India Infoline saying: "It will ensure increased employment and investment in an important industry sector in Tasmania, while the safeguards we have put in place will ensure they pay their tax.
"Australia continues to welcome and support foreign investment that is not contrary to our national interests."
The Tasmanian Land Company was initially owned by New Plymouth District Council of New Zealand. The dairy produces 7.7 million kilograms of milk solids every from approximately 18,000 cattle.
Morrison stated the deal will be subject to new conditions and it has to agree with the taxation law of Australia and directions to provide information related to the investment.
Morrison was quoted by the Financial Times saying: "A breach of these conditions could result in prosecution, fines and potentially divestment of the asset."
Moon Lake will invest $72m in the dairy, maintain the quality of milk supplied in Australia and create an additional 95 jobs, cited the publication.
Morrison added: "Ongoing foreign investment remains a key part of growing Australia's output and employment and, through this, our standard of living."
