Kirin Holdings Co. plans to sell its Australian subsidiary Lion Pty Ltd.'s beverage business to Australian dairy giant Bega Cheese Ltd. for more than 40 billion yen, according to sources.
Lion handles Kirin Holdings' Australian operations.
Kirin initially had planned to sell the business, Lion-Dairy & Drinks, to a company from China but had to abandon the deal because the Australian government did not give its approval due to deteriorating relations between Canberra and Beijing. Australia's objection meant Kirin needed to find another prospective buyer.
Lion-Dairy & Drinks is a beverage and dairy business that produces and sells milk, juice, yogurt and other products. The company has been hobbled partly because the recent drought increased the purchase price of milk.
Last year, Kirin decided to sell the business to China Mengniu Dairy Co. for about 45 billion yen and was seeking the green light from Australian authorities.
Kirin, however, was unable to obtain approval amid increasing China-Australian tensions over the spread of the novel coronavirus.
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