Mengniu's acquisition of a well-known Australian dairy company for alleged violation of Australia's national interests ended in failure
China Mengniu officially abandoned its plan to acquire the Australian dairy and beverage company Lion Dairy & Drinks because it is unlikely to be approved by the Australian government. The Australian Treasury Secretary stated that the acquisition plan was “against national interest”.
Lion Dairy & Drinks is Australia's second largest dairy company, and Kirin is its parent company. In November last year, China Mengniu and Japan's Kirin Corporation reached a 11 million Australian dollar acquisition agreement. The Chinese state-owned company COFCO holds approximately 6% of Mengniu's shares.
On August 8 (Tuesday), Kirin Corporation announced that the company and Mengniu formally abandoned the acquisition plan because it is unlikely that the plan will be approved by the Australian Federal Government.
Federal Treasury Secretary Josh Frydenberg (Josh Frydenberg) did not publicly stated that he would reject the acquisition agreement, but it is reported that he has privately notified Lion Dairy & Drinks in August that the acquisition plan will not be approved.
On Tuesday, Friedenberg said: "I have been informed that Mengniu and Lion Dairy & Drinks have agreed to abandon the acquisition plan. Previously, I had conveyed to Mengniu my preliminary proposal that the acquisition plan violates the (Australian) country interest."
Friedenberg did not specify which parts of the acquisition plan violated Australia's national interests. The transaction did not involve agricultural land. The Australian Competition and Consumer Commission (ACCC), the Australian Foreign Investment Review Board (FIRB) and the Ministry of Finance have all approved the transaction.
Previously, Friedenberg had approved Mengniu's acquisition of Bellamy, an Australian infant formula company. But then, China took economic retaliation against Australia, which insisted on investigating the source of the epidemic independently, and the relationship between the two countries deteriorated sharply.
Many Australian lawmakers have expressed concern about Mengniu's acquisition plan. Last year, Tasmanian neutral councillor Andrew Wilkie said that the phenomenon of selling Australian companies to Chinese companies is endless. Although Lion Dairy & Drinks is already a Japanese company, the problem is that China is a "all companies For countries subject to the central government, it is a problem to put more and more well-known Australian brands in the hands of such a country."
Lion Dairy & Drinks has many brands that are well-known to Australian consumers, including Big M series milk, Dairy Farmers milk and Pura flavored milk, as well as Vitasoy soy milk and coconut milk, and juice brands such as Daily Juice and The Juice Brothers.
Although the company is already a Japanese-owned company, it has 11 manufacturing plants in Australia and produces 8.25 million liters of milk each year. It has a pivotal position in the dairy industry. #