Several dairy firms including Saputo, Murray Goulburn and Bega Cheese are planning to bid for Australian milk processor United Dairy Power.
To be put up for sale by insolvency firm PPB Advisory, United Dairy Power's business is anticipated to cost around $100m.
The company currently has operations across Victorian towns Poowong and Shepparton, and South Australia's Murray Bridge and Jervois.
It is capable of processing 200 million liters of milk annually.
Earlier in February, Hong Kong business Five Star Foods acquired United Dairy in a deal worth $70m.
However, Rabobank took control of the milk processor in November and called for receivers after United Dairy's Chinese owners failed to inject additional capital to support the business.
The indicative offers for the milk processor are expected in December, while the auction's second and final stages are expected to be closed by early 2015.
