China’s Mengniu Dairy reaches $600m deal to acquire Australian drink brands

Hot on the heels of its $1.5 billion deal to buy Bellamy’s Organic, China Mengniu Dairy Company has agreed to buy Lion’s dairy and drinks business for $600 million.

Under the deal, announced on Monday morning, Mengniu would acquire major Australian dairy brands including Big M, Dairy Farmers, Pura and Farmers Union.

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

The fast-growing Chinese company, which is one of the top 10-12 dairy companies in the world, would also acquire well known juice names including Berri, Daily Juice and The Juice Brothers.

If it gets the green light, the deal, which is subject to approval from the Foreign Investment Review Board and the Australian Competition and Consumer Commission, would bring to a close Lion’s lengthy bid to sell its Dairy and Drinks business, after the company announced its intention to sell the division last year.


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