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

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© Reuters. © Reuters. – 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%.

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