Hong Kong stocks climbed for the first time this week as smartphone maker Xiaomi rallied and investors continued to assess the economic fallout from travel curbs in Europe and a delay in US stimulus package.
China Mengniu agreed in November to buy Lion Dairy & Drinks from Japan’s Kirin Holdings for US$429 million, but Canberra is reported to have blocked the sale amid tensions with Beijing.
China Mengniu Dairy Company offered to buy Lion Dairy & Drinks from Kirin Holdings in November last year in a deal worth A$600 million (US$434 million).
Shares of the dairy-products producer soared as much as 8.6 per cent in Hong Kong after its better-than-expected report of a 45 per cent to 60 per cent drop in net profit. It closed at its highest price in four months.
The ongoing US-China trade war has deterred mainland companies from making acquisitions abroad because of more scrutiny by the foreign investment authorities.
Inner Mongolia Yili Industrial Group, the sole sponsor of the games, said China Mengniu Dairy had infringed upon its interests by securing the status of joint global beverages partner of the Winter Olympics.
Football superstar Lionel Messi was the face of Mengniu’s sponsorship of the last World Cup in Russia.
The mainland’s second-largest dairy producer reported 2018 profit of 3.04 billion yuan
China Mengniu Dairy, the country's largest manufacturer of liquid dairy products, plans to pay HK$3.18 billion to dramatically boost its stake in China Modern Dairy, in an attempt to get a tighter hold of its raw milk supply.