China Mengniu Dairy Company has agreed a deal to acquire Australia-based Lion Dairy & Drinks after a number of other firms were touted as potential interested parties.
The move comes just months after China Mengniu Dairy moved to acquire local infant-formula supplier Bellamy’s Australia.
Lion Dairy & Drinks, part of the Australian food and drinks business Lion owned by Japan’s Kirin Holdings, is to be sold for AUD600m (US$407.5m), pending approval from Australia’s competition watchdog and the country’s board that oversees foreign investment.
The acquired business operates 13 manufacturing facilities and produces milk-based beverages, yogurt, white milk and plant-based products, according to a statement announcing the deal. Lion makes brands such as Pura milk and Dare iced-coffee. The transaction includes two joint ventures – Vitasoy Australia Products and Capitol Chilled Foods Australia.
Kirin put Lion’s dairy assets up for strategic review last year. Canada’s Saputo went on to buy Lion’s speciality cheese business, including brands such as South Cape, Tasmanian Heritage and Mersey Valley.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataSee Also:
The exit from dairy in Australia would leave Kirin with a beverage-alcohol business in the country including Tooheys and James Boag beer.
China Mengniu Dairy’s acquisition of Bellamy’s Australia was approved by the country’s overseas investment regulator, the Foreign Investment Review Board (FIRB), last week. Bellamy’s shareholders will vote on the deal next month.
The deal for Lion is still subject to final approval from FIRB and also the country’s watchdog, the Australian Competition and Consumer Commission (ACCC).
However, China Mengniu Dairy said in the statement the Australian treasury has made no objections to the transaction, adding the ACCC has indicated it has no intention to launch a review or block the deal.
