Australia's government may block China Mengniu Dairy Co's purchase of some of the country's best-known milk brands, the Australian Financial Review reported today, citing sources who blamed "diplomatic issues,'' Reuters reports. Treasurer Josh Frydenberg has gone against the advice of the Foreign Investment Review Board (FIRB) which was in favor of approving the A$600 million (US$430.98 million) deal, the newspaper said, without identifying its sources. That would mark the first government veto since Australia in July announced its biggest shake-up of foreign investment law in almost half a century. China Mengniu offered to buy Lion Dairy & Drinks Pty from Japan's Kirin Holdings Co in November, just 10 days after receiving the competition regulator's approval to buy infant formula maker Bellamy's for A$1.43 billion. A spokeswoman for China Mengniu did not immediately respond to requests for comment.

Source: The Standard August 20, 2020 05:26 UTC