The proposed sale was canceled on Tuesday. The Australian company, Lion Dairy, and its owner, Japanese beverage giant Kirin, both said in separate statements that approval from regulators was"unlikely to" materialize.
Some regulators in Australia had already green-lit the deal. The Australian Competition and Consumer Commission said in February that it had looked into the matter and would not oppose the acquisition. Australia has angered China by calling for a investigation into the origins of the coronavirus pandemic. Beijing later targeted its exports, namely by suspending some imports of beef and slapping heavy tariffs on barley.
Last week, the Chinese Commerce Ministry took aim at another industry. It announced an anti-dumping probe into imports of Australian wine.