SYDNEY: Australian Treasurer Scott Morrison on Friday officially rejected bids by two Chinese companies in the A$10-billion ($7.67-billion) sale of the country's biggest energy grid, Ausgrid, after they failed to overcome security concerns.

Morrison announced last week that neither State Grid Corp of China nor Hong Kong's Cheung Kong Infrastructure Holdings, the preferred bidders, would be allowed to seal a deal.

On Friday, Morrison said the acquisition by foreign investors would be contrary to the national interest.

The decision has caused a rift between Australia and biggest trading partner China, which accuses it of bowing to protectionist sentiment in blocking the bid, as well as an earlier one by a China-led consortium to buy cattle company Kidman & Co.