Mengniu Photo: cnsphoto

Domestic dairy behemoth Mengniu Dairy said Thursday that the company's deal concerning the acquisition of Australian dairy brand Lion-Dairy & Drinks Pty (LDD) is still underway, despite media reports that the Australian side will not approve the purchasing of LDD from Japan Kirin Holdings Co; news that could cast a shadow over the already fragile relations between China and Australia.

This came after the Australian Financial Review reported Thursday that the country's treasurer, Josh Frydenberg, "secretly shunned the Foreign Investment Review Board and Treasury which advised him to approve Mengniu Dairy's proposed A$600 million ($431million) acquisition of Lion Dairy & Drinks, but he hasn't publicly announced the rebuff." The Review did not name a source.

While Australia's Foreign Investment Review Board said it would approve the A$600 million deal, the government has the power to force the cancellation of the deal following reforms to Australia's foreign investment laws in June, media reports.

In response to the media report, an insider at Mengniu Dairy told the Global Times on Thursday that the transaction approval was still in process when asked about the deal.

Mengniu Dairy announced on November 25, 2019 that it would acquire 100 percent of LDD in cash considerations, according to the company's public report.