Kirin Cancels Aussie Beverage Biz Sale to Chinese Firm
Tokyo, Aug. 25 (Jiji Press)--Japan's Kirin Holdings Co. <2503> said Tuesday that it has canceled a deal to sell its Australian beverage business to a major Chinese dairy company.
Approval of the deal by Australia's Foreign Investment Review Board "is unlikely to be forthcoming," Kirin said in a statement.
According to Australian media reports, the Australian government was poised to reject the sale due to the worsening diplomatic relationship with China.
Kirin will "consider the best option again," an official said, indicating that it will look for another buyer or continue to own the Australian business.
In November last year, Kirin agreed to sell all shares in Lion-Dairy and Drinks Pty., under the wing of Kirin's unit supervising its Oceanian operations, to China Mengniu Dairy Co. for 600 million Australian dollars.
[Copyright The Jiji Press, Ltd.]