Australia said to reject China-backed company's offer to buy dairy firm, amid soured diplomatic ties

SYDNEY - Australia will not approve China Mengniu Dairy's proposed buyout of some of Australia's best-known milk brands from Japan's Kirin Holdings, the Australian Financial Review reported on Thursday .

China Mengniu Dairy offered to buy Lion Dairy & Drinks from Japan's Kirin Holdings in November last year. The law also empowers the government to force the sale of a business if it deems it a national security risk."The government does not comment on the details of foreign investment screening arrangements as they apply, or could apply, to particular cases," he said in an e-mailed response.

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