United Dairy Power, an Australian milk supplier, is in talks with Origo Partners, a Beijing-based private equity firm, over a sale of the company for about $70m.
Established in 1999, United Dairy operates two factories at Jervois and Murray Bridge in South Australia and has transport and logistics service.
Earlier this month, United Dairy general manager Darryl Cardona was quoted by Business Spectator as saying that the company was seeking to divest a minority stake and preferred an Australian investor.
For the past more than two years, United Dairy's founder and CEO Tony Esposito has been in search of a potential buyer for the company.
If a deal is finalized, this would be the second major divestment in the Australian dairy sector, following the acquisition of controlling stake in Warrnambool Cheese and Butter Factory by the Canadian giant Saputo.
