Bega buys back some of the milk supply from Japanese

Bega buys Japanese owned Lion’s Australian dairy business in $560m deal

Australia’s own ASX-listed Bega Cheese has struck a deal to buy Lion’s Dairy and Drinks business for $560 million – the latest in a string of deals to re-establish Australian ownership of key brands.

Under the deal Bega will acquire well known milk drink brands such as
Pura
Big M
Farmers Union
Dairy Farmers
Yoplait
Juice Brothers
Daily Juice

The transaction will give Bega Australia’s biggest national cold chain distribution network, which includes a vast network of fridges in convenience stores, service stations and elsewhere. And it will give Bega a substantial presence in the national white fresh milk market for the first time.

Bega executive chairman Barry Irvin said the combined businesses would generate annual revenue in excess of $3 billion and marked a historic moment for Bega Cheese, which started life as a farmer co-operative on the NSW south coast in 1899.

The sale is unconditional, required no further regulatory approvals and was expected to be completed in early 2021.

“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 still owns a range of beer, craft beer and seltzer in the Australian market.
Beer brands including
XXXX
Tooheys
West End
Little Creatures.

China Mengniu Dairy wasd all set to buy the business for $600 million but it was rejected by the federal government.

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