Finnish dairy products company Valio has agreed to buy Norwegian company Synnöve Finden's 42% holding in Estonian cheese producer AS Võru Juust.

Valio will then own 99% of the share capital of Võru Juust. Valio and Synnöve also made a long-term agreement for cheese deliveries from Võru to Synnöve. Valio said the acquisition strengthens its presence in Estonia.

"It supports Valio's new strategy for an expanded home market that includes the Baltic states, Sweden and Western Russia in addition to Finland. Valio can utilise its cheese production capacity by planning and managing operations consistently in both Finland and Estonia," the company said, adding that the transaction will be finalised as soon as possible.

Valio also said there will be no changes in personnel at Võru Juust as a result of its acquisition of the share capital.