Mexican dairy company Grupo Lala has completed negotiations to acquire Brazilian dairy company Vigor Alimentos (Vigor), including its stake in Itambé Alimentos.

Lala will now present the acquisition proposal to its board of directors to obtain the final approval.

Established in 1917, Vigor produces a wide range of dairy products, which are retailed under Vigor, Danubio, Faixa Azul, Serrabella, Leco and Amelia brands.

"Lala intends to obtain funding and possible additional capitalisations as part of the financial package for these acquisitions."

Vigor currently has 14 production plants, 31 distribution centres, 11 milk collection centres and 67,000 points-of-sale across Brazil.

Vigor holds a stake in Itambé Alimentos, which produces dairy products such as powdered and condensed milk, as well as milk caramel, yoghurt and UHT milk under the Itambé brand.

The completion of the transaction is subject to certain common conditions, which include the approval of Lala's shareholders and regulatory authorities.

Lala intends to obtain funding and possible additional capitalisations as part of the financial package for these acquisitions.

Grupo Lala has been producing milk and dairy products for more than six decades. It has 22 production plants and 160 distribution centres in Mexico, US and Central America.