Australia to Reject Kirin's Beverage Biz Sale to China Firm

Economy Politics

Sydney, Aug. 20 (Jiji Press)--Australian Treasurer Josh Frydenberg has decided to reject the planned sale of Australian beverage business of Japan's Kirin Holdings Co. <2503> to China Mengniu Dairy Co., a newspaper reported Thursday.

Frydenberg has gone against advice from the Foreign Investment Review Board to approve the deal, according to the Australian Financial Review.

Frydenberg told the major Chinese dairy company that he does not intend to approve its acquisition of Lion-Dairy and Drinks Pty., the report said, citing worsened diplomatic relations between the two countries as a reason.

If the decision becomes final, Kirin will have to look for a different buyer.

Mengniu recently bought Australian infant formula maker Bellamy's Australia Ltd. for 1.5 billion Australian dollars. The Australian government came under fire for approving the deal.

[Copyright The Jiji Press, Ltd.]

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