Mr Frydenberg has not elaborated on what components of the deal would be contrary to the national interest. There is no agricultural land involved in the deal and the Australian Competition and Consumer Commission,Foreign Investment Review Board and Treasury all approved the sale. Lion is already foreign owned by the giant Japanese brewer and food company Kirin,leading analysts to expect the sale would be waved through.
“We are disappointed with this outcome and will now consider pathways forward in relation to the Lion Dairy&Drinks business,” Lion said in a brief statement released on Tuesday morning.
Lion did not say if the business remained for sale or if it would be retained long term.
Mr Frydenberg last year approved an acquisition of baby formula producer Bellamy’s by Mengniu on the condition that a majority of directors be Australian citizens,the company keeps its headquarters in Australia for a decade and invests at least $12 million in infant milk formula processing facilities in Victoria.
But Australia's relationship with the Chinese Communist Party has deteriorated significantly since then,leading to Beijing launching trade strikes on beef,barley,students,tourists and wine over the past five months after Australia raised concerns about its handling of the coronavirus and its crackdown on Hong Kong.