China Mengniu Dairy to Purchase Kirin’s Beverage Unit for $419M

Investing.com – Hong Kong-listed China Mengniu Dairy Co (HK:) is set to purchase Kirin Holdings Co., Ltd. (T:)’s Australian beverage unit Lion Dairy & Drinks for about 45.6 billion yen ($419 million), according to a company statement on Monday.

Mengniu said it expects to close the deal next year. it will obtain Lion’s milk, yogurt and juice products. Kirin will maintain control over Lion’s beer, wine and spirits business.

The dairy giant agreed in September to buy organic infant formula maker Bellamy’s Australia Ltd. for A$1.5 billion ($1 billion).

Bloomberg said Beijing has been trying to restore confidence in the industry after a milk scandal in 2008 killed six children and poisoned 300,000 others. China has been tightening regulations on milk-powder imports and encouraging foreign dairy firms to invest in China, the article said.

Mengniu Dairy’s shares traded 0.9% higher in Hong Kong, while Kirin’s shares in Japan climbed about 0.6%.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.