The federal government had given Hong Kong-based company a week to make case for sale, but announced on Friday that the ban would remain

This article is more than 4 years old

This article is more than 4 years old

The New South Wales premier, Mike Baird, will take his bid to partially sell off his state’s electricity grid back to the market after the federal treasurer, Scott Morrison, confirmed its sale to Chinese buyers had been formally rejected.

Morrison had given the State Grid Corporation of China and Hong Kong’s Cheung Kong a week to make their case for buying Ausgrid but released his final decision late on Friday to block the deal to foreign investors.

Blocking the sale of Ausgrid was a poor decision and will cost Australia dear | Stephen Koukoulas Read more

“I have decided that the acquisition by foreign investors under the current proposed structure of the lease of 50.4% … would be contrary to the national interest,” he said in a statement.

Morrison had cited national security as one of the concerns held over the current proposal and its result of a large percentage of foreign ownership.

The premier said the decision was a “speed bump” and he was frustrated at the federal government’s delay.

“My frustration is that this should have been determined much earlier,” he told reporters in Sydney on Friday evening.

“What we need to do now, is get on with the job.”

Ausgrid electricity sale: Mike Baird criticises Turnbull for last minute intervention Read more

Baird insisted there were still many bidders interested, including foreign investors.

The state government had earmarked funds from the sale – expected to top $10bn – for infrastructure projects.

The NSW treasurer, Gladys Berejiklian, said she was confident the sale would go ahead before the next budget.

“We’re looking forward to banking the proceeds by the June budget next year,” she said.