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Bloomberg
China Mengniu Dairy Co agreed to buy Kirin Holdings Co’s Australian beverage unit Lion Dairy & Drinks for about 45.6 billion yen ($419 million), the Chinese dairy giant’s latest foray into the continent.
Mengniu will pick up Lion’s milk, yogurt and juice products, the companies said in a statemen. The deal is expected to close in the first half of 2020, they said.
Mengniu has been eyeing overseas acquisitions as China’s appetite for milk grows with its middle class. Mengniu’s deal follows an agreement in September to buy organic infant formula maker Bellamy’s Australia Ltd for A$1.5 billion ($1 billion), securing a premium brand in one of the fastest-growing segments of the dairy market.
China has been seeking to boost the industry and restore confidence after a milk scandal in 2008 killed six children and poisoned 300,000 others. It said earlier this year it will support domestic dairy producers in acquiring or setting up overseas bases and encourage foreign dairy firms to invest in China, while tightening regulations on milk-powder imports and online sales platforms.