Australia to block China Mengniu Dairy Company’s buyout of Lion Dairy & Drinks from Japan’s Kirin Holdings, media report says
- Australia Treasurer Josh Frydenberg has gone against the advice of the Foreign Investment Review Board, the Australian Financial Review reported on Thursday
- China Mengniu Dairy Company offered to buy Lion Dairy & Drinks from Kirin Holdings in November last year in a deal worth A$600 million (US$434 million)
Australia will not approve China Mengniu Dairy Company’s proposed buyout of some of Australia’s best-known milk brands from Japan’s Kirin Holdings, the Australian Financial Review reported on Thursday.
Australia Treasurer Josh Frydenberg has gone against the advice of the Foreign Investment Review Board (FIRB) which was to approve the A$600 million (US$434 million) deal, the report said, citing unidentified sources.
China Mengniu Dairy Company offered to buy Lion Dairy & Drinks from Kirin Holdings in November last year.
Australia in June announced the biggest shake-up of its foreign investment laws in almost half a century, giving the treasurer last-resort powers to vary or impose conditions on a deal or force a divestment after it has been approved by FIRB.
The government does not comment on the details of foreign investment screening arrangements as they apply, or could apply, to particular cases
The law also empowers the government to force the sale of a business if it deems it a national security risk.
