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Australia blocks Chinese firm's bid to buy major dairy company

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Australia said it 'would be contrary to national interests' to allow a Chinese firm to buy a major dairy producer Lion Dairy and Drinks, currently owned by Japan's Kirin.

Australia said Tuesday it"would be contrary to national interests" to allow a Chinese firm to buy a major dairy producer, the latest sign of souring relations between the two countries.

Although Australia's consumer watchdog had earlier cleared the deal, Australian Treasurer Josh Frydenberg said in a statement on Tuesday that the sale"would be contrary to the national interest". Just last year, Inner Mongolia-headquartered Mengniu was given approval to purchase one of Australia's largest baby-formula manufacturers, Bellamy's.

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