US-based dairy company Dean Foods is reported to be in talks to buy Spanish dairy companies Lauki and El-Prado Cervera from French dairy cooperative 3A.

The move is believed to be part of a plan to create a large dairy group in southern Europe, and the second-largest dairy company in Spain, reported AFX News, citing local media.

3A is experiencing financial difficulties and is seeking buyers for its Spanish assets, the report said. Dean Foods already controls Spanish dairy firm Celta.