The proposed AU$600 million ($430 million) sale of one of Australia’s largest dairy firms, Lion Dairy & Drinks, to China Mengniu Dairy Co. has been called off. Mengniu products are on display in a supermarket in Shanghai, on Oct 24, 2018. But the Treasurer did not provide any further information expanding on his concerns or explaining how the deal would damage Australia's interests. All content of the Dow Jones branded indices Copyright S&P Dow Jones Indices LLC 2018 and/or its affiliates. More than 250 farms in Queensland, New South Wales, Victoria and South Australia belonging to DFMCs 350 members supply over 270 million litres of milk. “Mengniu has a stable dairy supply chain in Australia and New Zealand, and will continue to pursue its international strategy and take advantage of the existing resources in both domestic and international markets,” the company said in a written statement to Bloomberg. Mengniu has been eyeing overseas acquisitions as China’s appetite for milk grows with its middle class. Signs are emerging of a possible sale of the Australia-based Lion Drinks and Dairy business, with China’s Mengniu Dairy said to be in negotiations to buy the business from Japanese owner Kirin. The companies then moved to call off the deal. Beijing has hit several Australian exporters with trade sanctions, while a number of federal MPs and senators have campaigned against the Lion deal, warning that it could undermine local milk supplies. "Given this approval is unlikely to be forthcoming at this time, Lion and Mengniu Dairy have mutually agreed to cease the current sale process. In November 2019, China Mengniu Dairy Company Limited announced the planned acquisition of Lion-Dairy & Drinks (LDD) Pty Ltd in Australia. The Australian company, Lion Dairy, and its owner, Japanese beverage giant Kirin, both said in separate statements that approval from regulators was "unlikely to" materialize. Mengniu and its subsidiaries manufacture and distribute quality, healthy and delicious dairy products for customers worldwide. Dairy Farmers Milk Co-operative members have expressed relief about the $600 million deal struck on the weekend to sell Lion Dairy & Drinks to China Mengniu Dairy. Mengniu offers diverse products including liquid milk products, ice cream, milk formula and cheese. Mr Frydenberg has been contacted for comment. It announced an anti-dumping probe into imports of Australian wine. China Mengniu, one of China’s largest dairy firms, agreed in November to buy Lion Dairy & Drinks from Japan’s Kirin Holdings for A$600 million … Australian farmers, Chinese consumers and the tensions in between, Poisoned chalice: Why China's scrutiny of Australian wine is bad news, COVID cost Sophie her job in Melbourne's events industry. This service may include material from Agence France-Presse (AFP), APTN, Reuters, AAP, CNN and the BBC World Service which is copyright and cannot be reproduced. The company is headquartered in Hohhot, Inner Mongolia and manufactures dairy products under the Mengniu brand. ", Frydenberg confirmed Tuesday that he had told Mengniu Dairy "that the proposed acquisition would be contrary to the national interest.". "We are disappointed with this outcome and will now consider pathways forward in relation to the Lion Dairy & Drinks business.". Mengniu is proposing to acquire Lion D&D’s raw milk processing facilities in Australia, two of which are located in Chelsea and Morwell in Victoria. "Given this approval is unlikely to be forthcoming at this time, Lion and Mengniu Dairy have mutually agreed to cease the current sale process," Lion Dairy said in a statement. "We are disappointed with this outcome and will now consider pathways forward.". Australia will not approve China Mengniu Dairy Co's proposed buyout of some of Australia's best-known milk brands from Japan's Kirin Holdings, the Australian Financial Review reported on Thursday. We acknowledge Aboriginal and Torres Strait Islander peoples as the First Australians and Traditional Custodians of the lands where we live, learn, and work. The ACCC will not oppose the proposed acquisition of Lion Dairy & Drinks Pty Ltd (Lion D&D) by China Mengniu Dairy Company Ltd (Mengniu) after closely considering the potential impact on competition. Its portfolio also includes Dare and Farmers Union iced coffee; Big M, Dairy Farmers and Pura Classic flavoured milk; Vitasoy soy milk and coconut milk; juice brands Daily Juice, The Juice Brothers and Berri; and Yoplait yoghurt, under licence. China's Foreign Ministry spokesman Zhao Lijian did not comment directly to the decision, but said "we hope Australia will provide fair and unbiased business environment for Chinese companies operating there". Japanese-owned beverage giant Kirin announced the sale of Lion Dairy and Drinks to Mengniu Dairy last November. Mengniu’s deal follows an agreement … Hong Kong (CNN Business)China Mengniu Dairy has called off its plan to buy an Australian drinks business for $430 million after the government in Australia said it would likely oppose the deal. China Mengniu Dairy has walked away from its proposed $600 million acquisition of Lion Dairy & Drinks after Treasurer Josh Frydenberg said the deal would be 'contrary to the national interest'. Last week the Australian Financial Review reported the Federal Government had decided to block the sale. Australia angered China by calling for a coronavirus investigation. China Mengniu Dairy Company Limited and its subsidiaries manufacture and distribute quality dairy products in China. All rights reserved. The Chinese dairy company Mengniu which earlier agreed to pay $1.5 billion to purchase organic baby formula maker Bellamy’s Australia has gone a step further in … Mengniu Dairy Co. Ltd. has pulled out of a deal to buy an Australia-based dairy producer from Japanese firm Kirin Holdings Co., after Australia’s Federal Treasurer told the Inner Mongolian dairy giant the purchase was not in the national interest. Last week, the Chinese Commerce Ministry took aim at another industry. A $600 million deal to sell the maker of Pura milk, Dare iced coffee and Yoplait yoghurt to a Chinese company has been terminated, after Treasurer Josh Frydenberg decided the sale was "contrary to the national interest". Disclaimer. Kirin Foods Australia entered into an agreement to sell LDD on a standalone basis to Monday Smoothie Pty Ltd, a subsidiary of Mengniu Dairy, which includes all white milk, milk-based beverages, yogurt, juice and water ice brands and assets. The Australian Competition and Consumer Commission approved the Lion sale in February, after considering the potential impact on competition. SYDNEY (Reuters) - Australia's government may block China Mengniu Dairy Co Ltd's <2319.HK> purchase of some of the country's best-known … Lion Dairy and Drinks owns several well-known brands sold in Australia It was set to be sold to China's Mengniu Dairy, but the deal did not secure foreign investment approval The deal has now been called off … broader geopolitical tensions between Australia and China. ", "Australian wine is by no means subsidized and by no means sold at or below market rates in the world market," he told reporters. Mengniu Dairy has offered 1.5 billion Australian dollars ($1 billion) to buy infant formula maker Bellamy's Australia, the companies said Monday. The proposed sale was canceled on Tuesday. Earlier this year the Coalition introduced temporary new rules to protect financially troubled Australian companies from foreign takeovers. Chinese company to take over Dairy Farmers and Aussie dairy icons for $600m, Have we hit peak China? Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Lion owns several iconic brands including Dairy Farmers, Masters and Pura milk. Last year the Federal Government approved the sale of Australian infant baby formula business Bellamy's for $1.5 billion to Mengniu. All times are ET. Mengniu Dairy gulps down two Australian milk producers The Chinese giant seeks scale and know-how to meet its country’s growing thirst for the stuff Business Dec 5th … Most stock quote data provided by BATS. The deal, which was worth about 600 million Australian dollars ($430 million), was first, Some regulators in Australia had already green-lit the deal. But the deal quickly became ensnared in the broader geopolitical tensions between Australia and China. In a statement, Mr Frydenberg said he had been advised the two companies had "mutually agreed to not proceed with the sale process". 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Mengniu also owns Australian dairy processor and exporter Burra Foods, Mike Smith Mengniu is proposing to acquire Lion D &D’s raw milk processing facilities in Australia, … Mengniu has an indirect interest in a producer and wholesale distributor of dairy products, Burra Foods Pty Ltd (Burra). Pura and a range of other big name Australian dairy brands would be sold to China Mengniu Dairy under a $600 million deal. Now Beijing is targeting its exports. Under the agreement, Kirin would have offloaded Lion Dairy — an Australian milk and juice business that is home to well-known brands such as Dairy Farmers, Pura and Vitasoy — to Mengniu. On November 24, 2019, China Mengniu announced that it was proposing to acquire 100% of the shares of Lion-Dairy & Drinks Pty Ltd, an Australia-based branded dairy … Mengniu Dairy (Stock Code: 02319.HK) is China's leading and world-famous dairy enterprise, ranking among the top ten dairy enterprises in the world since 2017. "Lion notes that China Mengniu Dairy Company Limited has been awaiting the outcome of the Foreign Investment Review Board review of its proposed purchase of Lion Dairy & Drinks," the statement said. "This follows the communication of my preliminary view to Mengniu Dairy that the proposed acquisition would be contrary to the national interest," he said. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Australian Trade Minister Simon Birmingham last Tuesday rejected claims of wine dumping, saying that he found the accusations "perplexing. By national rural reporter Kath Sullivan and foreign affairs reporter Stephen Dziedzic. It also includes Dairy & Drinks’ international business, its share of joint ventures Vitasoy Australia Products and Capitol Chilled Foods Australia and the licensing […] Both parties were still awaiting approval from Australia's Foreign Investment Review Board, and last week, the, The source told the newspaper that the decision was made due to "diplomatic issues. Factset: FactSet Research Systems Inc.2018. In a short press release issued today, the Chinese dairy company said it was pulling the plug on the deal as one of the conditions stated in the announcement has not been fulfilled on the conditions precedent end date. The Federal Government is still working on a broader overhaul of foreign investment laws which will require the Treasurer to sign off on foreign investments which have national security implications. Lion Dairy & Drinks has been sold to China Mengniu Dairy Company for $600 million. Mengniu, one of the world's biggest dairy companies, will acquire major Australian brands including Big M, Dairy Farmers, Pura, Berri and Daily Juice under the deal. In 2019, Mengniu made it again on the “Global Dairy Top 10” list published by Rabobank, and placed 27th on BrandZ™’s list of most valuable Chinese brands, topped the list of brand contribution and was crowned the Most Trend-setting Brand. Mengniu milk products seen on a shelf at a store in Beijing in 2019. China Mengniu Dairy Company Limited (Mengniu) proposes to acquire Lion-Dairy & Drinks Pty Ltd (Lion D&D). China Mengniu Dairy Company Limited (Chinese: 蒙牛) is a Chinese manufacturing and distribution company of dairy products and ice cream. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. Beijing later targeted its exports, namely by suspending some, And recently, reports had surfaced that the Mengniu deal could be scuttled. The Australian Competition and Consumer Commission, Australia has angered China by calling for a investigation into the origins of the coronavirus pandemic. Mengniu has been actively pursuing acquisitions in Oceania, proposing in September to purchase baby formula maker Bellamy's Australia for up to 1.46 billion Australian dollars ($989 million). Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. Morningstar: Copyright 2018 Morningstar, Inc. All Rights Reserved. This sale includes all white milk, milk-based beverages, yoghurt, juice and water ice brands and assets. Hong Kong (CNN Business) China Mengniu Dairy has called off its plan to buy an Australian … The competition watchdog says Mengniu's $600 million proposal to acquire Lion's raw milk processing facilities in Australia will not substantially lessen competition in … Mengniu milk products seen on a shelf at a store in Beijing in 2019. AEST = Australian Eastern Standard Time which is 10 hours ahead of GMT (Greenwich Mean Time), Massive Microsoft email hack ongoing despite emergency patches, Dykes on Bikes kick off Mardi Gras parade to a classic AC/DC rock anthem, More allegations likely to stem from Parliamentary cultural review, Labor warns, Champion surfers Jodie and Pauline led private lives that their conservative sport did not accept, A reprise of the PM's 'I don't hold the hose, mate' response, Frequent flyer data for major airlines hacked, travellers recommended to change passwords, The music industry used to be split into two worlds. Lu said there were "good synergies" between the two companies in Australia, New Zealand and South East Asia "so we said why not become even closer". Then 1991 happened, Victorian Government 'concerned' about reports nurses working at multiple quarantine hotels, 'Almost impossible' for government to pass industrial relations changes this month. Today, Kirin released a statement announcing the deal had been abandoned. Lion D&D and Burra both operate dairy processing plants in the Gippsland region of Victoria and overlap in the acquisition of raw milk from dairy farmers in Gippsland.