New Zealand dairy giant Fonterra Cooperative has issued a statement denying a report that it is competing for a stake in Israeli food firm Tnuva.

"Fonterra has no interest in buying a stake in the Israeli dairy company, Tnuva," the company was quoted by Dow Jones News as saying.

Fonterra was reported by Israeli news website Globes to be vying with food giants Kraft Foods and Nestlé to purchase up to a 50% stake in Tnuva.

The report claimed that Tnuva's attempt to form a strategic partnership with Nestlé would be problematic in terms of competition concerns, as Nestlé already owns a majority stake in Israeli food firm Osem.

To read our feature about Tnuva's planned tie-up with Nestlé, click here.