A Chilean investment group is reported to be nearing a deal to acquire the local unit of troubled Italian food group Parmalat.


“The operation may be closed as early as this week,” a source from investment group Inversiones Bethia told The Associated Press .


The source said Bethia would take control of 51% of Parmalat’s Chilean operation through a capital increase operation.


Parmalat’s Chilean unit has struggled to pay its suppliers, and around 200 local milk producers have stopped supplying the company until they receive payment, reported AP.