Chinese holding firm Natural Dairy Holdings has entered into an agreement to acquire two dairy farms from failed New Zealand dairy group Crafar Farms.

The acquisition will be completed through local subsidiary UBNZ Assets Holdings.

The deal will see Natural Dairy take control of farm land, livestock and milk powder production plants in the country and is valued at NZ$1.5bn (US$1.05bn).

“The acquisition constitutes a very substantial acquisition for the company,” Natural Dairy revealed in a statement to the Hong Kong stock exchange.