French dairy group Lactalis has got approval from Brazilian antitrust authority to purchase the dairy units of food processor BRF SA in a deal worth $594m.
Lactalis will execute the deal through its Parmalat subsidiary in Brazil.
Lactalis will acquire dairy facilities of BRF in Brazil besides its Batavo and Elegê brands, reported Reuters, citing the government gazette.
After the deal, Lactalis' market share will be under 10% in most of the segments in Brazilian market where it is present said Cade, the antitrust regulator.
Lactalis was represented by Indusval & Partners bank to coordinate the sale.
One of the largest milk producing country, Brazil is a lucrative market for many multinationals. The Brazilian dairy market was estimated worth about $20bn in 2013 by a major market research firm.
Lactalis earlier bought Brazilian gourmet-cheese maker Balkis in 2013.
Image: Lactalis gets Brazilian regulators' approval to buy BRF's dairy units. Photo: courtesy of Naypong at Freedigitalphotos.net.