Morgans analyst Belinda Moore said the deal was in line with Bega's strategy of lifting its branded product sales and could give the company more clout with supermarkets. Owners approached the Mengniu Dairy ahead of the sale, they said in a statement Monday. Mengniu Dairy will acquire Melbourne -based dairy company Lion Dairy & Drinks, which sells Big M, Dairy Farmers and Dare products. Credit:Morgan Hancock. Lion is an alcoholic beverage company that operates in Australia and New Zealand, and a subsidiary of Japanese beverage giant Kirin.It produces and markets a range of beer and cider in Australia, and wine in New Zealand and the United States through Distinguished Vineyards & Wine Partners. Lion Dairy is an Australian company wholly owned by Japan’s Kirin Holdings Co. Kirin said it had agreed with Mengniu Dairy Co to terminate a $600 million transfer deal signed in November because Australia’s Foreign Investment Review Board was unlikely to approve it. Lion Dairy & Drinks’ strong connection with Australian dairy farmers and fruit growers, sees the procurement of about 825 million litres each year from around 280 Australian dairy farmers and approximately 50 million kilograms of fruit from growers. The net acquisition price is $534 after a $26 million deduction for IT separation costs. Lion Dairy and Drinks has been owned by Japanese firm Kirin, which was advised by Deutsche, and the latest deal will not only see the business … By having more well-known brands and shelf space in supermarkets, the bigger Bega could also now be on a better footing when dealing with supermarkets. Bega Cheese has announced it will acquire all shares in Lion Dairy & Drinks (LDD) for $560 million. A full list of brands is included below. Sign up for the Herald's here and The Age's here. Woolworths’ own milk, as well as Pauls and Farmhouse Gold, is supplied by Italian company Parmalat, which is owned by France’s Lactalis. The farmer-owned Norco dairy co-operative has joined the list of contenders weighing up a bid for at least part of the big $600 million Lion Dairy and Drinks business. "It really strengthens our company and gives us full access to consumers and full access to that great product range. San Miguel Corporation of the Philippines entered a bidding war for National Foods with New Zealand's Fonterrain 2004. The $1.1 billion ASX-listed company, which still counts the small town of Bega on the NSW lower south coast as its corporate headquarters, will become a food and dairy heavyweight after beating a field that earlier included alternate asset manager Tanarra Capital and international dairy giant Saputo. The Australian Competition and Consumer Commission allowed the sale in February. Your web browser is no longer supported. Bega Cheese recently purchased Vegemite for $460 million in 2017. To improve your experience. The deal made public last week will see Bega Cheese pay $534million for the national milk and dairy foods processing business of Japanese-owned Lion Dairy and Drinks… "The sale will see Bega, as an established dairy and food company with more than 120 years of heritage, well placed to drive the business forward given its deep dairy capabilities and strong commitment to iconic Australian brands and the local dairy industry," Lion chief executive Stuart Irvine said. Lion's Dairy Farmers, Pura Milk and Farmers Union Iced Coffee. Password. Username. Bega told the ASX the transaction would deliver annual synergies of at least $41 million, derived from a more efficient milk network and corporate reorganisation. The headline price for the deal is $560 million, but Bega said the net price of the acquisition is $534 million, when IT separation costs at Lion were excluded. Lion Dairy and Drinks operates 11 Australian manufacturing facilites and has another two with joint-venture partners. The deal was an important step forward for Lion, enabling continued investment in categories like beer and seltzer, he said. Other brands included in Lion's portfolio include Pura and Masters milk, Daily Juice, Big M flavoured milk and Dare iced coffee. With Bega announcing the $560 million deal to buy Lion's dairy and drinks business on Thursday, Mr Irvin said the business would now generate about $3 billion in annual revenue, with the company's earnings channels far more diversified once the deal is completed. 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. Mr Joyce said China's "creeping acquisition" of dairy-related assets was of deep concern and called for the deal to … Start the day with major stories, exclusive coverage and expert opinion from our leading business journalists delivered to your inbox. Kirin Holdings Co has pulled the pin up on a deal that would have seen the Japanese company's wholly-owned Australian dairy firm Lion Dairy & Drinks sold to a Chinese company. Dairy Farmers and Dairy Choice are both supplied by Lion, which is owned by Japanese company Kirin. Lion Dairy and Drinks is now owned by Japanese company Kirin. 1970s Holden Torana to fetch more than $1 million at auction. Bega CEO Paul van Heerwaarden and Bega Cheese chair Barry Irvin say the deal is a huge step forward for the company. An earlier version of this story valued the deal at $534m, which was the net price of the acquisition when IT separation costs at Lion were excluded. "You could argue this further cements their relationship with the major supermarkets because the fact is they're going to have a lot more products in store," she said. 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, owned by Japanese company Kirin, produces a number of big-name fresh milk brands, including Pura, Dare, Farmers Union, Big M, Masters, and Dairy Farmers. He added that the deal would also see iconic local brands find their way back to an Australian company. The combined business is expected to generate revenue in excess of $3 billion. The purchase will be completed by the end of January 2021. To fund the deal, expected to be completed in January next year, Bega will undertake a capital raising at $4.60 per share, which represents a 9.1 per cent discount to its last traded price. 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. Bega Cheese's executive chairman Barry Irvin said the deal will give Bega enormous access to cold refrigerators in service stations and convenience stores around the country. The sale to Saputo will include all of Dairy & Drinks’ specialty cheese brands, including King Island Dairy, Tasmanian Heritage, South Cape, Mersey Valley, Heidi Farm and Australian Gold, as well as cheese manufacturing assets at Burnie (The Heritage) and King Island (King Island Dairy and Cheese Store), and the two Lion-owned farms on King Island (Horizon Glen and Kyeema). National Foods board unanimously accepted the San Miguel Corporation offer. Co-operative chairman and Gympie dairy farmer, Andrew Burnett said the iconic Dairy Farmers brand is now back in Australian ownership. Lion, which also operates a large beer business with brands including XXXX Gold, Tooheys and West End, is owned by Japanese giant Kirin. Black Friday explained: Aussie retailers jump on board discount event, Calls for Sydney NYE fireworks to be cancelled, Sydney COVID-19 cluster: Interactive graphics and Christmas restrictions explained, Can I see my family for Christmas? "The expanded product range, manufacturing and distribution infrastructure and brand portfolio realises our ambition of creating a truly great Australian food company.". It's a great deal. Norco co-operative was in chase for Lion Dairy & Drinks assets Established in Byron Bay, Norco is a farmer-owned co-operative, with 326 members on 214 dairy farms in … Lion Dairy & Drinks — an Australian company wholly owned by Japan's Kirin Holdings Co —and China Mengniu Dairy Company Ltd have agreed to not proceed with the sale. “This is an unfortunate result,” Kirin said in a statement. King Island Dairy was founded in the early 1900’s and produces a range of … Every year we purchase around one billion litres of milk from over 550 Australian dairy farmers, and crush approx. "It's obviously a hugely significant acquisition and a huge step forward for the company in terms of creating that scale-sized branded food company. 1:34pm Nov 26, 2020 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. Bega CEO Paul van Heerwaarden and Bega Cheese chair Barry Irvin say the deal is a huge step forward for the company. The announcement follows reports the Australian government could block the deal in its first veto since announcing a shake-up of foreign investment laws in July. Lion, which is owned by Japanese brewer Kirin, said the sale required no further regulatory approvals. Harvey Fresh is owned by Parmalat (Italian company) along with Pauls. 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