Pengxin may buy 2 cattle farms in Australia

Chinese conglomerate Shanghai Pengxin Group Co Ltd is set to become the largest farmland owner in Australia if it is successful in the acquisitions of two cattle farms for A$1 billion ($720 million).

The Shanghai-based company has placed separate offers for Consolidated Pastoral Co and S Kidman & Co Ltd, two of the country's largest beef producers, according to the Australian Financial Review newspaper. If the acquisitions are successful, Pengxin will create a cattle powerhouse that would own more than 1 percent of the Australian continent, according to the report.

Greg Campbell, chief executive officer and managing director of S Kidman, refused to confirm if Pengxin had placed an acquisition offer for the company. Nonetheless, the executive noted that the cattle property company was currently examining bids from several groups.