The federal government has rejected the proposed takeover of GrainCorp by American company Archer Daniels Midland on the grounds that it was not in the national interest.
Treasurer Joe Hockey told ABC News that now is not the right time for a 100 per cent foreign acquisition of this key Australian business.
Deputy Prime Minister and Minister for Infrastructure and Regional Development, Warren Truss said he welcomed the decision.
Truss said though the government supported foreign investment and its continued importance to agriculture in Australia, not all foreign takeovers were in the national interest.
"The Australian grain industry must now get on with building a strong future for itself and growing its export markets across the globe," he said.
"I welcome the fact that Australia will continue to have a major locally-owned company dedicated to furthering the interests of the Australian industry."
Similar themes are being played out in the three-way tussle over WCB between Canadian company Saputo, Bega Cheese and Murray Goulburn (MG).
The WCB board is still backing Saputo's bid but MG says that scenario could affect the future of Australia's dairy industry. MG has launched a legal challenge against Saputo's latest offer.
