A Chinese Company Has Been Given The Go Ahead To Buy A Big Aussie Dairy

Feb 21, 2020

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The ACCC has given China’s Mengniu Dairy the green light to takeover the Lion dairy and drink business, which includes raw milk processing facilities in Australia and the Big M, Farmer’s Union and Pura brands.

According to 7 News:

The competition watchdog says Mengniu’s proposal to acquire Lion’s raw milk processing facilities in Australia will not substantially lessen competition in the Gippsland region, where Mengniu already has a presence due to a partial ownership of Burra Foods.

“While Burra and Lion D&D compete for the acquisition of raw milk, they are not close competitors, and our investigations concluded that dairy farmers are unlikely to switch between the two,” ACCC Deputy Chair Mick Keogh said.

“The level of aggregation from the proposed acquisition will be relatively low, with Burra and Lion D&D combined acquiring less than 25 per cent of raw milk in Gippsland.

“Two other large raw milk buyers remain in the Gippsland region, Saputo and Fonterra, as well as some smaller processors.”

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