The Buzz | Australia blocks Kirin’s $430M sale of business to Chinese company

Australia’s government announced yesterday 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 likely to increase strain on Chinese-Australian relations.
Treasurer Josh Frydenberg said he had advised the buyer China Mengniu Dairy Co. that the sale of the Japanese company’s Australian subsidiary Lion Dairy and Drinks “would be contrary to the national interest.”
Frydenberg’s statement did not elaborate.
Kirin and China Mengniu Dairy Co. said they had decided not to continue with the sale, agreed to in November, after Frydenberg expressed his preliminary view to block the deal.
In practice, such preliminary decisions are final.
Kirin said the sale required approval of the Australia’s Foreign Investment Review Board.
“Given this approval has not been secured to date and is unlikely to be forthcoming at this time, regrettably, the parties have agreed to terminate the agreement,″ a Kirin statement said.