Parmalat in ‘exclusive’ talks to buy Brazilian dairy

Italian dairy giant Parmalat has confirmed reports that it has entered into “exclusive” negotiations to acquire a stake in Brazilian dairy processor, LBR Lacteos do Brasil (LBR).

Reuters reported yesterday that Parma-based dairy processor Parmalat is in talks to purchase a stake in LBR, which filed for bankruptcy protection earlier this year.

According to the article, Brazil-based LBR planned to hold exclusive talks with Parmalat for a “limited period.”

“With reference to what has been published by some press services, Parmalat Spa confirms that an exclusive negotiation is underway for a limited period with Lacteos do Brasil SA (LBR) in order to explore terms and conditions of a potential acquisition agreement,” said Parmalat in a statement issued yesterday.

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LBR already markets Parmalat brand dairy products in Brazil under license from the Italian firm. (Mark ASTLEY)

LBR manufactures and markets a variety of dairy products including fresh milk, milk powder, yogurt, cheese, cream, butter and dairy drinks.

It also markets a range of Parmalat brand products under license from the Italian firm.