Bright Dairy planning to acquire raw-milk supplier from parent firm

Bright Dairy & Food Co, China's third-largest milk producer by market value, plans to purchase raw-milk supply operations from its State-owned parent.

The company will acquire cattle-breeding and raw-milk businesses under its parent's Shanghai Dairy Group unit, Pan Jianjun, a spokesman for the group, said on Thursday. The deal would help Bright Food Group Co consolidate more dairy operations under its main listed arm, Pan said.

Bright Food Group, controlled by the Shanghai government, joins State-owned COFCO Corp in trying to boost competitiveness by merging some of its disparate businesses. The move would help Bright Dairy ensure a reliable raw milk supply as it seeks to boost beverage sales in Asia's largest economy.