The Australian government said Friday that the deal for China's Dakang Australia to take control of the Kidman beef company is "contrary to the national interest."
Dakang has until Tuesday to respond to the government's concerns, but the announcement means the deal is likely to be blocked.
The Chinese company and its local partner, Australian Rural Capital, want to buy Kidman and 77,300 square kilometers (30,000 square miles) of its land for $370 million Australian dollars ($283 million). Dakang brought on board ARC, which was planning to take a 20% stake, in an effort to overcome opposition to selling so much land to foreigners.
But that wasn't enough to sway Australian Treasurer Scott Morrison.
He said he was worried that selling the Kidman property in one huge chunk had made it hard for Australian bidders to compete.