Mengniu to buy dairy company in Australia for $407m

China Mengniu Dairy Co Ltd is buying Australia's Lion Dairy and Drinks from Japan's Kirin Foods for A$600 million ($407 million), making it the second acquisition by the Chinese dairy giant in Australia after it acquired infant formula milk provider Bellamy in September.

Kirin Holdings Co Ltd and its subsidiary Lion Pty Ltd said on Monday that Kirin Foods Australia Holdings Tty Ltd, a 100 percent subsidiary of Lion, has entered into an agreement with China Mengniu Dairy under which all the shares in Lion Diary and Drinks Pty Ltd will be transferred to Monday Smoothie Pty Ltd, a Mengniu Dairy subsidiary.

Lion CEO Stuart Irvine said that the sale includes all white milk, milk-based beverages, yogurt, juice and water ice brands and assets.