Bega Cheese buys Kirin’s Australian dairy arm

Australia | After having offered its underperforming dairy unit to nearly everyone for two years, Japanese brewer Kirin finally found a buyer: On 26 November 2020 media reported that Kirin will sell its Australian beverage and dairy subsidiary to the local dairy company, Bega Cheese, for USD 412 million. 

Kirin had originally planned to clinch a deal with a Chinese company, which would have paid a higher price, but the transaction was put on hold amid growing trade tensions between Australia and China. Another candidate, Canada’s Saputo, one of the top ten dairy processors in the world, withdrew from talks.

The sale to Bega, a 121-year old former dairy cooperative, will not require regulatory approval.

For Kirin, the deal marks the end of a drive to restructure or sell off less profitable businesses. The company plans to focus on health-related products as part of its diversification strategy.

In Australia, Kirin owns the number-two brewer, Lion.