Bega buys Lion's Dairy and Drinks for $560 million Bega buys … Bega's success would not have been possible if not for the federal government's move to reject on national security grounds a $600 million deal between Lion and China Mengniu Dairy for the Lion business, which had been signed last year. Lion, which also operates a large beer business with brands including XXXX Gold, Tooheys and West End, is owned by Japanese giant Kirin. The deal was an important step forward for Lion, enabling continued investment in categories like beer and seltzer, he said. 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. Lion has a large portfolio of beers including XXXX, Tooheys and Little Creatures. Darren is the mining and agribusiness reporter for The Age and The Sydney Morning Herald. Username. Lion's Dairy Farmers, Pura Milk and Farmers Union Iced Coffee. 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? 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 … 26 November 2020: Kirin Holdings and Lion announce agreement to sell Dairy & Drinks to Bega Cheese Limited Kirin Holdings and Lion have today announced an agreement to sell the Dairy & Drinks business to Bega Cheese Limited (Bega) for A $560 million. Sydney restrictions explained, Australian watchdog delays Google's purchase of Fitbit over competition fears, Lorna Jane to face court over claims activewear could stop coronavirus spread, Uber-wealthy, super elite rake in multi-billions in 2020. Key points: Lion Dairy and Drinks owns several well-known brands sold in Australia It was set to be sold to China's Mengniu Dairy, but the deal did not secure foreign investment approval The deal has now been called off due to the delay Lion's … 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). 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. Harvey Fresh is owned by Parmalat (Italian company) along with Pauls. Farmers Union Iced Coffee is a South Australian brand owned by Japanese company Kirin China Mengniu Dairy has announced it will take over Lion Dairy & Drinks brands The sale has angered many consumers, but the SA Dairyfarmers' Association says it will be good for business Under the deal Bega will acquire well known brands such as Dairy Farmers, Yoplait and Farmers Union. 1970s Holden Torana to fetch more than $1 million at auction. Every year we purchase around one billion litres of milk from over 550 Australian dairy farmers, and crush approx. Share Tweet In 2005 San Miguel acquired National Foods for $1.8 billion. Bega buys Lion's Australian dairy business in $560m deal. The transaction marked a historic moment for Bega, which started life as a farmer co-operative in 1899, Mr Irvin said. Not an online customer? "The expanded product range, manufacturing and distribution infrastructure and brand portfolio realises our ambition of creating a truly great Australian food company.". "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. 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. Bega Cheese recently purchased Vegemite for $460 million in 2017. Owners approached the Mengniu Dairy ahead of the sale, they said in a statement Monday. It's a great deal. Dairy Farmers and Dairy Choice are both supplied by Lion, which is owned by Japanese company Kirin. Lion Dairy & Drinks We produce, market and distribute some of Australia’s most iconic brands in milk, dairy beverages, yoghurt, juice and soy. Credit:Morgan Hancock. The combined business is expected to generate revenue in excess of $3 billion. Up for grabs is Lion Dairy, an Australian company wholly owned by Japan’s Kirin Holdings Company. Riverina Fresh appears to be a co-op company owned and run by a bunch of Riverina dairy farmers. Other brands included in Lion's portfolio include Pura and Masters milk, Daily Juice, Big M flavoured milk and Dare iced coffee. Kirin struck a deal in November to divest its Lion Dairy and Drinks subsidiary to China Mengniu Dairy. Mr Joyce said China's "creeping acquisition" of dairy-related assets was of deep concern and called for the deal to … He added that the deal would also see iconic local brands find their way back to an Australian company. Sign up for the Herald's here and The Age's here. 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. 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. National Foods board unanimously accepted the San Miguel Corporation offer. An easy and convenient way to place your orders online Sign in. Bega will also hold licences and alliances with brands such as Vitasoy. Your web browser is no longer supported. Mengniu Dairy will acquire Melbourne-based dairy company Lion Dairy & Drinks, which sells Big M, Dairy Farmers and Dare products. I think that's long overdue and needed to happen," Mr Irvin told The Age and The Sydney Morning Herald. Complete Dairy is owned by Lion (the same mob who own Dairy Farmers, Pura and Masters as well as XXXX and Tooheys beer). 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. 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. It really strengthens our company and gives us full access to consumers and full access to that great product range. 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. Co-operative chairman and Gympie dairy farmer, Andrew Burnett said the iconic Dairy Farmers brand is now back in Australian ownership. The ACCC has cleared the way for China Mengniu Dairy to lap up Lion's Dairy and Drinks portfolio, which includes the Dairy Farmers, Pura milk, Dare and Farmers Union iced coffee brands. The Australian Competition and Consumer Commission had earlier signed off on San Miguel Corporation's various Australian acquisitions, noting "there is no overlap between San Miguel's different activities in Australia and hence no change likely to t… “This follows the communication of my preliminary view to Mengniu Dairy that the proposed acquisition would be contrary to the national interest,” Treasurer Josh Frydenberg said. Bega shares remain in a trading halt until Friday. 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. 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. Lion Dairy & Drinks Portal. The capital raising includes an entitlement offer of about $220 million and an institutional placement of about $181 million. "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. 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. Announcing the deal to shareholders, Bega Cheese Limited said the purchase will be funded by new debt facilities and the proceeds of a $401 million underwritten entitlement offer. "The acquisition delivers important industry consolidation and value creation with synergies across the entire supply chain. San Miguel Corporation of the Philippines entered a bidding war for National Foods with New Zealand's Fonterrain 2004. 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 … Watch the gripping new drama series Your Honor now on Stan. 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. The net acquisition price is $534 after a $26 million deduction for IT separation costs. King Island Dairy was founded in the early 1900’s and produces a range of … 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… "It's great to be the company that's acquiring brands that were previously owned by international companies ... and bringing them into Australian hands. “This is an unfortunate result,” Kirin said in a statement. Mengniu Dairy will acquire Melbourne -based dairy company Lion Dairy & Drinks, which sells Big M, Dairy Farmers and Dare products. Cheesemaker Alice Crawford, Food Technologist We have two cheese factories which we look after under the Lion Dairy & Drinks company - King Island Dairy, and The Heritage in Burnie, Tasmania. "We are delighted to announce this acquisition which we believe will create significant value for shareholders," said Mr Irvin. Leaked Wall Street report predicts Bitcoin to hit US$320k in 2021. 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. The Australian Competition and Consumer Commission allowed the sale in February. 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). Next time you are standing at the dairy fridge pondering the increasingly dizzying array of milk choices, think carefully before you reach for a bottle.Now, more than ever, we need to look for Australian owned milk brands because nearly all of the big names in dairy that you might be familiar with are owned … 75,000 tonnes of fruit from orchards across the country. Lion Dairy and Drinks is now owned by Japanese company Kirin. Password. Property News: 12 edibles to plant this spring - domain.com.au. It's a great deal for us," he said. Lion is then ultimately owned by the Japanese company Kirin. 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. 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, which has been on the market for more than 12 months, also owns a beer business that makes Little Creatures, James Squire and Tooheys. 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. "It really strengthens our company and gives us full access to consumers and full access to that great product range. The deal adds a wide array of fresh dairy products such as yoghurt and flavoured milk to Bega's existing portfolio of dairy products like cheese and butter, and its big selling grocery items peanut butter and Vegemite. To improve your experience. Bega Cheese executive chairman Barry Irvin says adding a range of popular household dairy names such as Yoplait, Big M and Pura Milk to its books will finally give the business the heft it was seeking in the global food sector. Lion Dairy and Drinks will now come under Australian ownership after the federal treasurer blocked attempts to sell the firm to Chinese dairy giant Mengniu in August. Lion Dairy and Drinks operates 11 Australian manufacturing facilites and has another two with joint-venture partners. Remember me Forgot password? "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. 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. Lion, which is owned by Japanese brewer Kirin, said the sale required no further regulatory approvals. Order products and manage your account online. 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. Bega CEO Paul van Heerwaarden and Bega Cheese chair Barry Irvin say the deal is a huge step forward for the company. Start the day with major stories, exclusive coverage and expert opinion from our leading business journalists delivered to your inbox. A full list of brands is included below. The purchase will be completed by the end of January 2021. Bega Cheese has announced it will acquire all shares in Lion Dairy & Drinks (LDD) for $560 million. 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. Lion brands also … Bega CEO Paul van Heerwaarden and Bega Cheese chair Barry Irvin say the deal is a huge step forward for the company. 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. NSW-based former farmer co-operative Bega Cheese is set to confirm it is bringing the Japanese-owned Lion dairy business back into Australian control. Its products include Dairy Farmers, PURA Milk, … Woolworths’ own milk, as well as Pauls and Farmhouse Gold, is supplied by Italian company Parmalat, which is owned by France’s Lactalis. 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