Kirin closes sale of Lion Dairy & Drinks to Bega Cheese

Tokyo-based Kirin Holdings Co. Ltd. on Jan. 25 closed the sale of Australian dairy business Lion Dairy & Drinks Pty. Ltd. to New South Wales-based Bega Cheese Ltd.

The Japanese company had announced the deal Nov. 26, 2020, after its initial agreement with China Mengniu Dairy Co. Ltd. failed to secure approval from Australia's Foreign Investment Review Board.

The A$560 million transaction includes the transfer of Lion Dairy's white milk, milk-based beverages, yogurt, juice and water ice brands and assets to Bega Cheese, which manufactures and sells cheese products and spreads, including Vegemite, in Australia.

Bega Cheese Executive Chairman Barry Irvin said the acquisition of Lion Dairy doubles the size of Bega Cheese, with revenue of A$3 billion.

The deal also strengthens the company's portfolio with the addition of Lion Dairy products such as yogurt brand Yoplait and juice brand Berri, Irvin said.