Australia blocks Kirin's $430 mil sale of dairy business to Chinese company
27 August, 2020
Australia's government announced on Tuesday it proposed to block Kirin Holdings Co's 45.6 billion yen ($430 million) sale of its Australian beverage unit to a Chinese company in a development more likely to increase strain on Chinese-Australian relations.
Treasurer Josh Frydenberg said he previously advised the customer China Mengniu Dairy Co that the sale of japan company's Australian subsidiary Lion Dairy and Drinks “would be contrary to the national interest.”
Frydenberg's statement didn't elaborate.
Kirin and China Mengniu Dairy Co said they had didn't continue with the sale, decided to in November, after Frydenberg expressed his preliminary view to block the offer.
Used, such preliminary decisions are final.
Kirin said the sale required approval of the Australia’s Foreign Investment Review Board.
“Given this approval is not secured to date and is unlikely to be forthcoming at the moment, regrettably, the parties have decided to terminate the agreement,″ a Kirin statement said
Frydenberg announced his veto after The Australian Financial Review the other day reported that the Foreign Investment Review Board had approved the sale a lot more than six months ago.
Asked about the newspaper report, Frydenberg said last week his government does not comment on the details of individual investment cases.
The sale fell through weekly after China launched a study into whether Australia is exporting wine at improperly low prices in a fresh dispute between major trading partners that could reduce usage of the largest market for Australian vintners.
The anti-dumping investigation focuses on wine in containers 2 liters (68 fluid ounces) or smaller, which makes up about most Australian exports, the Chinese Ministry for Commerce said. It said the probe was prompted by a complaint from Chinese wine producers in July, but gave no details.
The Australian government denied subsidizing exporters.
Another anti-dumping investigation closed the Chinese market to Australian barley in-may through crippling tariffs after Australia supported demands an investigation in to the origins of the coronavirus pandemic. Beijing also blocked imports of beef from Australia’s four biggest abattoirs.
Australian announced in March that it had been tightening restrictions on foreign takeovers due to national security concerns raised by the pandemic.
Source: japantoday.com