China Mengniu Dairy Co. has agreed to buy Kirin Holdings Co.'s Australian beverage unit Lion Dairy & Drinks for about ¥45.6 billion, the Chinese dairy giant's latest foray into the continent.
Mengniu will pick up Lion's milk, yogurt and juice products, while Kirin will keep Lion's beer, wine and spirits business, the companies said in a statement Monday. The deal is expected to close in the first half of 2020, they said.
Mengniu has been eyeing overseas acquisitions as China's appetite for milk and infant formula grows with its middle class. Mengniu's deal follows an agreement in September to buy organic infant formula maker Bellamy's Australia Ltd. for 1.5 billion Australian dollars ($1 billion), securing a premium brand in one of the fastest-growing segments of the dairy market.