(Yicai Global) Nov. 25 -- China Mengniu Dairy, one of Asia's biggest milk producers, plans to pay AUD600 million (USD407 million) in cash for all of Australia's Lion Dairy & Drinks as it looks to accelerate its expansion in the Asia-Pacific region.

Mengniu will buy the stock from Japanese brewer Kirin Holdings, the Hohhot-based buyer said in a statement today, adding that it will obtain all tangible and non-tangible assets and will consolidate Lion Dairy into its own earnings reports.

The move, which Mengniu described as an important milestone in its APAC plans, follows a USD1 billion plan unveiled in September to take over milk powder brand Bellamy's Australia. Mengniu also acquired Burra Foods in 2016. It intends to leverage these brands to better integrate into the APAC market.

Founded in 1991, Lion Dairy was originally known as National Foods. It is Australia's leading dairy brand and mainly produces milk, yogurt, juice and other drinks. Kirin purchased the firm in 2007 for USD3.1 billion and in 2009 merged it with Lion Nathan, another Kirin acquisition. It then split the company into alcohol-focused Lion and Lion Dairy & Drinks in 2011.

Shares of Mengniu rose almost 0.9 percent today to close at HKD29.65 (USD3.79).

Lion Dairy & Drinks collects around 825 million liters of milk and 50 million kilograms of fruit every year from 365 farmers, Mengniu said. Its cold chain distribution network, which includes 13 facilities across Australia serving 35,000 customers, made AUD45.8 million in net profit last year.

Editor: James Boynton