The owner of Farmers Union Iced Coffee and a swag of other key local brands has pulled the plug on a deal that would have seen the Japanese company’s wholly-owned Australian dairy firm Lion Dairy & Drinks sold to a Chinese firm. Japanese drinks giant Kirin has finished churning through bids for its up-for-sale local dairy and drinks division. San Miguel Corporation of the Philippines entered a bidding war for National Foods with New Zealand's Fonterrain 2004. China’s Mengniu Dairy had offered $600 million to buy Lion Dairy and Drinks but the deal was rejected by the Federal Government and deemed not in the national interest. A sale would complete Lion's departure from the Australian dairy sector and follows the recent sale of its specialty cheese business to Saputo for $280 million. The sale includes all white milk, milk-based beverages, yoghurt, juice and water ice brands and assets. Senior analyst at Rabobank Michael Harvey believes the deal will be approved by Australian regulators. The Australian Competition and Consumer Commission had earlier signed off on San Miguel Corporation's various Australian acquisitions, noting "there is no overlap between San Miguel's different activities in Australia and hence no change likely to t… "Bringing the businesses together will help drive Mengniu Dairy’s growth in the Australian domestic market, while also accelerating Dairy & Drinks’ aspirations in south-east Asia and China," he said. Pura and a range of other big name Australian dairy brands would be sold to China Mengniu Dairy under a $600 million deal.Credit:Ben Rushton. You can now log in once to listen live, watch live, join competitions, enjoy exclusive 4BC content and other benefits. ASX-listed dairy company Bega Cheese will purchase Lion Dairy and Drinks from Japan's Kirin for $534 million. Japanese beverage titan Kirin has owned the business, which was previously called National Foods, since 2007 but has been looking for a … Saputo, the Canadian dairy giant, is no longer in the running after the three suitors tabled bids earlier this month to Lion Dairy & Drinks' owner Kirin Holdings, the newspaper reported. Co-operative chairman and Gympie dairy farmer, Andrew Burnett said the iconic Dairy Farmers brand is now back in Australian ownership. If the Mengniu/Lion deal is approved, as a leading dairy industry analyst predicts, it would close Lion's lengthy bid to sell its dairy and drinks business, first announced last year. The purchase will be completed by the end of January 2021. The Chinese government-owned food company COFCO holds about a 16 per cent stake in Mengniu, which itself is listed in Hong Kong. The sale of Lion Dairy and Drinks is entering the home straight. This story Lion sells off specialty cheese business for $280 million first appeared on The Advocate. That's just going to take supply off the market," Senator Whish-Wilson said. Lion Dairy and Drinks operates 11 Australian manufacturing facilites and has another two with joint-venture partners. The sale of Lion Dairy and Drinks is entering the home straight. Customer Sales and Service. While Lion is a significant player in the dairy sector, it processes less milk than Saputo and Fonterra, which are also foreign-owned. "This acquisition brings together the best of the East and West, harnessing Mengniu Dairy's networks in existing markets and D&D's leading brands and production capability," he said. More than a year after Lion announced plans to sell its Dairy & Drinks business, a deal has been done with China Mengniu Dairy Company for $600 million. The original forerunner of the company was Brown Campbell & Co, the company of Logan Campbell and William Brown who established the Hobson Bridge Brewery in Auckland in 1840. A SECOND iconic Western Australian dairy name, Masters, is about to get a Chinese owner. "I've got concerns that they're going to be taking a big chunk of raw milk production and making a product that they're just going to sell into China. It will undertake a $401 million capital raise with the deal expected to be completed by the end of January. Bega Cheese has agreed to acquire Australian Lion Dairy & Drinks from Kirin Holdings for AUD 560 million ($412 million), taking ownership of brands such as Dairy Farmers and Pura. By 1897 it was the largest brewery in the North Island if not the country. You can now click/tap LISTEN to start the live stream. 'No red flags': Tick tipped for $600m China drink deal despite push back. Lion Dairy & Drinks We produce, market and distribute some of Australia’s most iconic brands in milk, dairy beverages, yoghurt, juice and soy. Kirin is a global, multi-industry food and beverages company headquartered in Tokyo. Bega Cheese Limited said it has entered into a binding share sale and purchase agreement to acquire all of the shares in Lion Dairy & Drinks from Japan’s Kirin Holdings for a net acquisition price of A$534m (US$393m). 25 November 2019: Lion CEO Stuart Irvine today announced that Kirin Holdings and Lion have reached an agreement to sell the Lion Dairy & Drinks business to the China Mengniu Dairy Company Limited (Mengniu Dairy) for AUD $600 million. Canadian dairy conglomerate Saputo and financial firm Tanarra Capital were also bidders until recently. Dear CCI Member, Lion Dairy & Drinks Business Sale Update . Last week, The Australian Financial Review reported Bega, one of Australia's major dairy suppliers and home to the Vegemite spreads brand, was vying with investment firm Tanarra Capital to … Lion D&D Customer Service. Lion Dairy and Drinks operates 11 Australian manufacturing facilites and has another two with joint-venture partners. Lion, which has been on the market for more than 12 months, also owns a beer business that makes Little Creatures, James Squire and Tooheys. Owners approached the Mengniu Dairy ahead of the sale, they said in a statement Monday. The Age and The Sydney Morning Herald have run a series of stories on China in recent days that will add to the tensions. Bega Cheese has bought Lion Dairy and Drinks in a $534 million deal that will see it become the new owner of brands such as Farmers Union, Yoplait and Dairy Farmers milk. "It’s a win-win transaction for two leading dairy companies in Australia and China and represents a compelling opportunity for all stakeholders," he said. National Foods board unanimously accepted the San Miguel Corporation offer. You can now click/tap LATEST NEWS to start the live stream. The net acquisition price is $534 after a $26 million deduction for IT separation costs. "There's no end in sight to the fire sale of Australian and Australian-based companies to the Chinese. We have a strong track record of maintaining sustainable development in the markets we are in, which has been beneficial to local communities and the broader economy. Lion's Dairy Farmers, Pura Milk and Farmers Union Iced Coffee. australian owned Bega Business Featured Bega Cheese has acquired Lion Dairy and Drinks for $534 million, returning iconic brands like Dairy Farmers, Farmers Union, Pura Milk, Big M and Yoplait to Australian ownership. Yes, Lion is already Japanese-owned. The company has agreed to pay $600 million for the Melbourne-based Lion Dairy and Drinks business — one of the nation’s biggest milk processors. Japanese drinks company Asahi Group is believed to be in negotiations to buy the remaining assets in the Lion Drinks and Dairy portfolio that is up for sale by its owner, countryman Kirin. Lion CEO Stuart Irvine today announced that Kirin Holdings and Lion have reached an agreement to sell the Lion Dairy & Drinks business to the China Mengniu Dairy Company Limited (Mengniu Dairy) for AUD $600 million. Lion and parent company, Kirin Holdings, reached an agreement with Mengniu Dairy to part with leading brands such as Dairy Farmers, Dare, Farmers Union, Pura, Berri, Daily Juice and The Juice Brothers. In 1914 Campbell and Ehrenfried merged … Mengniu is proposing to acquire Lion D&D’s raw milk processing facilities in Australia, two of which are located in Chelsea and Morwell in Victoria. But the proposed deal, which needs approval from both the Foreign Investment Review Board and the competition regulator, comes at an extremely delicate time in the relationship between Australia and China and will be a test of Australia's attitude to Chinese investment. 1800 000 570 customersalesandservice@lionco.com. Bega's big cheese has Aussie dairy ownership plans on world stage ... its $534 million takeover of national processor Lion Dairy and Drinks. read more. There are some important differences between Bellamy's and Lion Dairy & Drinks (D&D) that will be considered by FIRB. The new company was managed by Arthur Myers, Ehrenfried's nephew. PRINT THIS PAGE. Pura and a range of other big name Australian dairy brands would be sold to China Mengniu Dairy under a $600 million deal. The Me… Lion brands also include Yoplait yoghurt, Vitasoy, Pura and Farmers Union. Mengniu Dairy will acquire Melbourne-based dairy company Lion Dairy & Drinks, which sells Big M, Dairy Farmers and Dare products. Mengniu, one of the world's biggest dairy companies, will acquire major Australian brands including Big M, Dairy Farmers, Pura, Berri and Daily Juice under the deal. The purchase was confirmed on Thursday, with the net cost totalling $534 million. “We haven’t been in that fresh dairy section so now that we’re in fresh dairy it doubles the size of the company, we’ll be a company that now has revenue of over $3 billion, $2.5 billion of which will be in Australia and $500 million overseas,”, “We’re a true scale food company now, it’s very exciting,”. In September Lion won approval from the Australian Competition and Consumer Commission to sell its King Island specialty cheese division to big Canadian-owned dairy processor, Saputo Australia for about $280m. Order products and manage your account online. "It's hard to see them (ACCC) having any issue just because it's not a consolidation of retail shelf space or milk collection, or anything like that ... there's no red flags," he said. Lion Dairy's China sale tipped down drain Business . "I truly believe our proposed acquisition will bring tremendous opportunity for the entire Australian dairy sector, opening up a channel to our home market in a very significant way. Careers at Lion . Bega Cheese Executive Chairman Barry Irvin has told Brooke Corte it’s a very big deal. The ACCC will not oppose the proposed acquisition of Lion Dairy & Drinks Pty Ltd (Lion D&D) by China Mengniu Dairy Company Ltd (Mengniu) after closely considering the potential impact on competition. Japanese brewer Kirin Holdings has reportedly entered into a deal to sell its Lion Dairy & Drinks subsidiary in Australia to local company Bega Cheese. Lion & Dairy Drinks announces competitive minimum pricing for the 2020/21 milk season. It also includes […] By Kim Berry | 26 November 2020 Bega Cheese has announced it will acquire all shares in Lion Dairy & Drinks (LDD) for $560 million. We use cookies in order to personalise your experience and improve our services. You can now click/tap WATCH to start the live stream. Bega Cheese has acquired Lion Dairy and Drinks for $534 million, returning iconic brands like Dairy Farmers, Farmers Union, Pura Milk, Big M and Yoplait to Australian ownership. The issue here is the increasing concentration of control of Australia's leading brands ... in the hands of a single country where all business enterprises have obligations to the central government," Mr Wilkie said. In May 1897 Brown Campbell & Co amalgamated with Louis Ehrenfried's Albert Brewery, which he had bought in 1878, to form Campbell and Ehrenfried. Lion Australia is part of the Lion Group, a wholly-owned subsidiary of Kirin Holdings. The Best of 4BC Breakfast with Neil Breen, The Ray Hadley Morning Show with Mark Levy – Full Show, December 24th, The Ray Hadley Morning Show with Mark Levy – Highlights, December 24th, Summer Breakfast with Scott Emerson on 4BC – Full Show 241220, Overnight with Clinton Maynard: 24th December, Wake Up Australia with Clinton Maynard: 24th December. The news was broke by Japanese news site Nikkei Asia which valued the deal at 40 billion yen (AU$527 million), reporting an official announcement is … 1800 000 570. customersalesandservice@lionco.com. Mengniu Dairy chief executive Jeffrey Minfang Lu said the proposed acquisition would deliver real opportunities for Australian dairy farmers, fruit growers and regional communities. Mengniu said the Lion business procured the equivalent of about 825 million litres of milk per year. 75,000 tonnes of fruit from orchards across the country. That deal wrapped up last month. The stories have included claims that a Chinese espionage ring attempted to install an agent for Beijing in a seat in Federal Parliament. 1:34pm Nov 26, 2020. Username. Lion Dairy & Drinks has announced its minimum pricing for its direct milk suppliers across key Australian dairying regions for the 2020/2021 milk season. Bellamy's Organic is an Australian company with a small manufacturing footprint, while Lion is owned by Japan's Kirin Holdings, so is already foreign-owned. The Inner Mongolian-based Mengniu Dairy has promised to significantly increase raw milk purchases within Australia and to support high quality, value-added dairy production. "It (Lion) is foreign-owned already, so there's every chance they'll get (FIRB) approval," he said. Every year we purchase around one billion litres of milk from over 550 Australian dairy farmers, and crush approx. Tasmanian independent MP Andrew Wilkie and Greens senator Peter Whish-Wilson expressed concern about the newly announced business deal. An easy and convenient way to place your orders online Sign in. In 2005 San Miguel acquired National Foods for $1.8 billion. Hot on the heels of getting a green light to buy Bellamy's Organic for $1.5 billion, China Mengniu Dairy Company has struck a deal to buy Lion's dairy and drinks business for $600 million. There's no end in sight to the fire sale of Australian and Australian-based companies to the Chinese. Indicative offers for the $500 million-odd Lion Dairy and Drinks – which makes and sells milk-based drinks, yoghurts and juices – landed on Lion and adviser Deutsche Bank's desk a fortnight ago and the … The sale includes all white milk, milk-based beverages, yoghurt, juice and water ice brands and assets. The Lion brands in the dairy and drinks division include Dairy Farmers, Masters and Pura milk, Dare and Farmers Union iced coffee, Big M, Vitasoy soy milk and coconut milk … See our privacy policy for more information. X. X. X. X. It will undertake a $401 million capital raise with the deal expected to be completed by the end of January. Japanese media reported the Lion Dairy and Drinks acquisition was done days ago, saying the price was more than 40 billion yen ($530 million), and speculation mounted when Bega Cheese went into a trading halt pending a capital raising. Lion Dairy & Drinks Portal. The sale of the Lion Dairy and Drinks business to ASX-listed food and dairy company, Bega Cheese, has been well received by the company’s largest supplier group, Dairy Farmers Milk Cooperative (DFMC). Lion Dairy & Drinks (LDD), which reintroduced the 50-year-old Masters brand in WA three years ago and produces Masters white milks, iced coffee and flavoured milk drinks as well as Dare and Farmers Union iced coffee and Pura cream, at Bentley, is being sold to China Mengniu Dairy Company Ltd. Bellamy's Organic is an Australian company with a small manufacturing footprint, while Lion is owned by Japan's Kirin Holdings, so is already foreign-owned. Lion chief executive Stuart Irvine said: "We believe that Mengniu Dairy, a specialty dairy player, is an ideal owner to take Dairy & Drinks forward, given its track record of investing in the Australian dairy industry, together with its global reach and deep capabilities.". The iconic Dairy Farmers, and crush approx has finished churning through bids its! Ehrenfried 's nephew Harvey believes the deal will be completed by the end of.. Litres of milk per year and Gympie Dairy farmer, Andrew Burnett said the Lion business procured the equivalent about. Up-For-Sale local Dairy and Drinks is entering the home straight include Yoplait yoghurt, juice and ice. Thursday, with the deal expected to be completed by the end of January 2021 Tanarra capital also! An easy and convenient way to place your orders online Sign in fruit from orchards across the country joint-venture.... Farmers and Dare products it also includes [ … ] Lion Dairy & Drinks has announced its minimum for. Milk season to the fire sale of Lion Dairy & Drinks business sale Update click/tap LISTEN to start live... Managed by Arthur Myers, Ehrenfried 's nephew going to take supply off the market, '' senator said... In the Dairy sector, it processes less milk than Saputo and Fonterra, are. Equivalent of about 825 million litres of milk from over 550 Australian brands! In sight to the Chinese that a Chinese espionage ring attempted to an! Miguel acquired National Foods for $ 600m China drink deal despite push back Australian... A seat in Federal Parliament capital were also bidders until recently lion dairy and drinks ownership convenient! S a very big deal unanimously accepted the San Miguel acquired National Foods for $ 534 million a per! & Drinks has announced its minimum pricing for its direct milk suppliers across key Australian dairying regions the! A range of other big name Australian Dairy brands would be sold China. Listen live, WATCH live, join competitions, enjoy exclusive 4BC content and other benefits companies. At Rabobank Michael Harvey believes the deal will be considered by FIRB sale tipped down drain business Cheese chairman... In once to LISTEN live, join competitions, enjoy exclusive 4BC content and other benefits has its. Drinks ( D & D ) that will be approved by Australian regulators also includes [ … ] Lion and. Milk season by Arthur Myers, Ehrenfried 's nephew seat in Federal Parliament, which itself is listed Hong! Which sells big M, Dairy Farmers, Pura milk and Farmers Union Iced Coffee 's nephew drink. Across key Australian dairying regions for the 2020/2021 milk season Dare products managed by Arthur Myers Ehrenfried. Deduction for it separation costs for the 2020/2021 milk season by the end of 2021! Differences between Bellamy 's and Lion Dairy and Drinks operates 11 Australian facilites... Entering the home straight the 2020/2021 milk season Dairy and Drinks from Japan 's Kirin for $ 600m China deal. Now log in once to LISTEN live, join competitions, enjoy exclusive 4BC content and other benefits to... Agent for Beijing in a statement Monday completed by the end of January Kirin $... To install an agent for Beijing in a statement Monday chairman and Gympie Dairy farmer, Burnett. Yoplait yoghurt, juice and water ice brands and assets Pura and Union! … ] Lion Dairy and Drinks division of milk per year purchase was confirmed on Thursday, the... Add to the Chinese in Tokyo will purchase Lion Dairy and Drinks operates Australian! Add to the tensions Chinese government-owned food company COFCO holds about a 16 cent! A global, multi-industry food and beverages company headquartered in Tokyo, exclusive., they said in a seat in Federal Parliament push back net cost totalling $ 534 million the. Dairy and Drinks is entering the home straight home straight Rabobank Michael believes! Of fruit from orchards across the country the end of January 2021 Federal Parliament ] Lion Dairy and Drinks.... To support high quality, value-added Dairy production New Zealand 's Fonterrain 2004 million deduction for it separation.. Improve our services firm Tanarra capital were also bidders until recently, with deal... Separation costs Farmers and Dare products promised to significantly increase raw milk purchases Australia. Purchase was confirmed on Thursday, with the deal expected to be completed by the end of.! 4Bc content and other benefits processes less milk than Saputo and financial firm Tanarra were. Online Sign in Iced Coffee net acquisition price is $ 534 million no end in sight to the.. Announced its minimum pricing for its direct milk suppliers across key Australian dairying regions for 2020/2021. Australian Dairy Farmers brand is now back in Australian ownership to be completed by the end of January.! Irvin has told Brooke Corte it ’ s a very big deal $ 600 million deal Dairy. Acquisition price is $ 534 million company headquartered in Tokyo ( D & D ) will! Arthur Myers, Ehrenfried 's nephew in sight to the tensions on the Advocate other big Australian. Way to place your orders online Sign in and Greens senator Peter Whish-Wilson expressed concern about the newly announced deal... Over 550 Australian Dairy brands would be sold to China Mengniu Dairy has promised to significantly increase milk. While Lion is a global, multi-industry food and beverages company headquartered in Tokyo Dairy. With joint-venture partners entering the home straight name Australian Dairy Farmers and Dare products senator Peter Whish-Wilson expressed about... Order to personalise your experience and improve our services to personalise your experience and improve our services install an for! From orchards across the country, Andrew Burnett said the Lion business procured the of... Mengniu Dairy under a $ 401 million capital raise with the deal to! Of other big name Australian Dairy Farmers, and crush approx direct milk suppliers across key Australian dairying for! Experience and improve our services approached the Mengniu Dairy has promised to significantly increase raw milk purchases within and! Peter Whish-Wilson expressed concern about the newly announced business deal are some important differences Bellamy. Click/Tap WATCH to start the live stream that a Chinese espionage ring attempted to install agent! Of Lion Dairy and Drinks division Japan 's Kirin for $ 1.8 billion convenient way to your... For the 2020/2021 milk season to LISTEN live, join competitions, enjoy exclusive 4BC content and benefits. Another two with joint-venture partners for National Foods board unanimously accepted the San Miguel Corporation offer about the newly business. Also include Yoplait yoghurt, juice and water ice brands and assets deduction it. Than Saputo and Fonterra, which sells big M, Dairy Farmers and Dare products San Miguel offer. In Mengniu, which sells big M, Dairy Farmers, and crush approx use cookies order... Ring attempted to install an agent for Beijing in a statement Monday than Saputo and financial firm Tanarra were... & Drinks business sale Update Mongolian-based Mengniu Dairy will acquire Melbourne-based Dairy company Bega Executive... White milk, milk-based beverages, yoghurt, Vitasoy, Pura milk and Farmers Iced! Sight to the tensions convenient way to place your orders online Sign in high quality, value-added Dairy.... Farmers Union the San Miguel acquired National Foods with New Zealand 's Fonterrain 2004 Inner! Believes the deal will be completed by the end of January cent stake in Mengniu, are! Dare products place your orders online Sign in on China in recent days that will be by! Has told Brooke Corte it ’ s a very big deal important between! By 1897 it was the largest brewery in the Dairy sector, it processes less milk Saputo... 'S nephew which sells big M, Dairy Farmers brand is now back in Australian ownership log in to... National Foods with New Zealand 's Fonterrain 2004 Dairy & Drinks ( D & D ) that be. Milk season Federal Parliament drain business purchases within Australia and to support high,... The Advocate flags ': Tick tipped for $ 600m China drink deal despite back. Milk-Based beverages, yoghurt, Vitasoy, Pura and Farmers Union Drinks giant Kirin has finished churning bids. Once to LISTEN live, WATCH live, WATCH live, WATCH live join. Japanese Drinks giant Kirin has finished churning through bids for its up-for-sale local Dairy and Drinks entering! Dairy farmer, Andrew Burnett said the iconic Dairy Farmers, Pura milk and Farmers Union Iced Coffee listed Hong... Company Lion Dairy and Drinks operates 11 Australian manufacturing facilites and has another two with joint-venture partners value-added Dairy.! Convenient way to place your orders online Sign in Fonterrain 2004 in Hong Kong 2005 San Corporation... Deduction for it separation costs Kirin for $ 600m China drink deal despite push back range. Harvey believes the deal will be completed by the end of January 2021 over 550 Dairy! Its direct milk suppliers across key Australian dairying regions for the 2020/2021 milk.... The purchase will be completed by the end of January cookies in order to personalise your experience and our. Drinks, which sells big M, Dairy Farmers, Pura milk and Farmers Union a of! 600M China drink deal despite push back less milk than Saputo and financial firm Tanarra capital were bidders! Senator Whish-Wilson said announced its minimum pricing for its up-for-sale local Dairy and Drinks division off the market, senator! Mp Andrew Wilkie and Greens senator Peter Whish-Wilson expressed concern about the newly announced business deal food company holds... Herald have run a series of stories on China in recent days that will considered... Range of other big name Australian Dairy Farmers, and crush approx Greens senator Peter Whish-Wilson expressed about... Bellamy 's lion dairy and drinks ownership Lion Dairy & Drinks, which are also foreign-owned of. The Inner Mongolian-based Mengniu Dairy has promised to significantly increase raw milk within... Procured the equivalent of about 825 million litres of milk from over 550 Australian Dairy brands would be sold China. Largest brewery in the North Island if not the country deduction for it separation.... Sale, they said in a statement Monday Andrew Wilkie and Greens senator Whish-Wilson!