Lactalis, the global dairy giant, is to cement its presence on the Brazilian market with the acquisition of milk processor Itambe Alimentos from CCPR, a dairy cooperative based in Minas Gerais.
CCPR excercised a right to acquire the outstanding 50% of Itambe Alimentos from fellow Brazilian firm Vigor, following the latter’s acquisition by Mexican dairy giant Grupo Lala.
The deal value will be in the order of $600 million, according to a source quoted in Reuters. The agreement, which will require approval from Brazil’s competition authorities, is reported to include a long-term supply contract between Lactalis and CCPR.
The acquisition of Itambe Alimentos will give Lactalis a market-leading position on the Brazilian dairy market. The French firm already has an established presence in the country via the brands Batavo, Elege and Parmalat.
Source: Valor Economico / Reuters
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