Chinese company to buy Dairy Farmers and more dairy brands for $600 million
The Chinese company behind the $1.5 billion takeover of organic infant formula producer Bellamy’s has struck a deal to purchase another Australian dairy business.
China Mengniu Dairy is set to pay Japanese beverage giant Kirin $600 million to acquire its Lion Dairy & Drinks portfolio.
The Lion brands include Dairy Farmers, Pura, Dare, Farmers Union, Big M, Vitasoy, Yoplait and Daily Juice.
“The full divestment of the Dairy & Drinks business will ensure it has an owner that is well placed to grow the business over the long term, while also accelerating Lion’s pivot to becoming a leading global adult drinks business,” Lion chief executive Stuart Irvine said.
The Dairy and Drinks component of the company employs about 2,300 people across Australia, Singapore, Malaysia and China, and has 11 manufacturing sites around Australia.
The company buys about 825 million “milk equivalent” litres a year from around 280 Australian dairy farmers as well as 50 million kilograms of fresh fruit from about 85 fruit growers.
The proposed deal, which needs to be approved by the Foreign Investment Review Board and the Australian Competition and Consumer Commission, comes as reports emerged that a Chinese intelligence agency attempted to install a spy for Beijing in Federal Parliament.