Australian government blocks Chinese purchase to big dairy Australian firm

A $600 million deal to sell one of the Australian top dairy firms – owned by an even larger Japanese dairy company – to a Chinese company has been terminated after Treasurer Josh Frydenberg decided the sale was "contrary to the national interest".

The Japanese-owned beverage giant announced the sale of the Australian dairy company to the Chinese dairy in November 2019, but the deal quickly became trapped in the broader geopolitical tensions between Australia and China. Beijing has hit several Australian exporters with trade sanctions, while a number of federal MPs and senators have campaigned against this dairy deal, warning that it could undermine local milk supplies.

Last week the Australian Financial Review reported the Federal Government had decided to block the sale.