China’s largest milk powder maker, Shijiazhuang Sanlu Group, is reportedly nearing a deal to sell a 39% stake in Sanlu to New Zealand dairy giant Fonterra.


The two companies are in the final round of negotiations, but the purchase price has not yet been decided, reported the Business Daily Update, citing a Sanlu official.


If the deal goes ahead, Fonterra will become the second-largest shareholder of Sanlu after Shijiazhuang Dairy Group.


Asia is Fonterra’s main export market, with Japan and the Philippines two of the main destinations for Fonterra’s dairy products.