The Federal Government says it will block Hong Kong-based CK Group’s $13 billion buyout of gas pipeline operator APA Group.

The government has cited national security concerns in its decision to prevent the proposed acquisition of APA.

It says the deal would lead to an undue concentration of foreign ownership by a single company in one of Australia’s central gas transmission businesses.

Treasurer Josh Frydenberg says a final decision will be made within 2 weeks.

CK Group is run by Hong Kong businessman Victor Li.

The deal would have seen CK controlling pipelines that deliver half of the country’s gas, as it already owns power distributor Duet Group.

Mr Frydenberg says it should not be seen as an adverse reflection on CK Group or the individual companies.

The deal was cleared by the Australian Competition and Consumer Commission (ACCC) in September on the proviso that CK Group sell natural gas pipeline and storage infrastructure assets in Western Australia to allay monopoly fears.

The ACCC did not look at the question of concentration of foreign ownership.

The Australian Foreign Investment Review Board (FIRB) assessed the deal on behalf of the government, expressing concerns about aggregation and the national interest implications of creating such a dominant player in the gas and electricity sectors.

CK Group’s attempt to buy the electricity network Ausgrid was declined in 2016 on similar national security grounds.