Kirin Holdings Co and China Mengniu Dairy Co said that they have called-out their deal on the sale of the Japanese company’s wholly-owned Australian dairy firm Lion-Dairy and Drinks Pty Ltd to the Chinese company. This statement comes after the Australian Financial Review, last week, reported that the Australian government had decided to block the sale.
Treasurer Josh Frydenberg said he had advised the buyer China Mengniu Dairy Co. that the sale of the Japanese company’s Australian subsidiary Lion Dairy and Drinks “would be contrary to the national interest.”
“This follows the communication of my preliminary view to Mengniu Dairy that the proposed acquisition would be contrary to the national interest,” he said. Frydenberg’s statement did not elaborate on how the deal would damage Australia’s interests.
On Tuesday, Kirin’s statement said, “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 & Drink.”
“Given this approval is unlikely to be forthcoming at this time, Lion and Mengniu Dairy have mutually agreed to cease the current sale process. We are disappointed with this outcome and will now consider pathways forward in relation to the Lion Dairy & Drinks business,” it added.
