Brazilian dairy group LAEP has reached a memorandum of understanding with Danone Ltda with a view to acquiring the trademark "Poços de Caldas".

The deal would see LAEP purchase all strategic assets related to this trademark, and the licensing for the "Paulista" brand in Brazil, Bolivia and Paraguay.

Cream cheese, butter, cream and pasteurized milk are sold under the Paulista umbrella.

According to the agreement, LAEP would gain the rights to these trademarks for a fifteen-year term.

The transaction will be concluded on the completion of the business audit, LAEP said.