(Yicai Global) Aug. 27 -- Yantai Changyu Pioneer Wine will pay AUD3.91 million (USD2.8 million) for an additional 15 percent stake in Kilikanoon Wines, bringing its holdings in the Australian winery to 95 percent, China’s oldest and largest wine producer said today.

The shares have been purchased from General Manager Warrick Duthy, Chief Winemaker Kevin Mitchell and Director Bruce Baudinet, the Yantai, Shandong province-based firm added.

Changyu already holds 80 percent equity in the Clare Valley winery, which it bought in 2018 for AUD20.6 million (USD14.9 million). Half of the estate’s wines will be sent to China, Chinese media reported at the time, citing Duthy.

China is Australia’s largest overseas wine market. In the year ended June 30, Australia exported AUD1.2 billion (USD870 million) worth of wine to China, including Hong Kong and Macau, according to statistics from Wine Australia. This was AUD430 million more it sold to its second largest market in the US.

Kilikanoon sells mid to high-end wines and is one of four overseas wineries controlled by Changyu. In the first half the Leasingham, South Australia-based firm posted net profit of CNY890,300 (USD129,300) on revenue of CNY18.93 million (USD13.7 million).

China launched an anti-dumping probe into Australian wines in two liter or less containers starting on Aug. 18 after the China Alcoholic Drinks Association complained that Australia was subsidizing the cost of its wines sold in China.

Editor: Kim Taylor