Mexico’s Grupo Lala has announced that Cooperativa Central dos Produtores Rurais de Minas Gerais (CCPR) intends to exercise its right of first refusal to acquire 50% of the remaining shares in Itambé from Brazilian dairy company Vigor Alimentos.

In 2013, Vigor became a partner of CCPR with the purchase of a 50% stake in Itambé, which is a dairy company in Brazil with a product portfolio including powdered and condensed milk, milk caramel, yoghurt, dairy products and UHT milk.

The latest development comes after Lala and JBS Group entered a definitive agreement on 3 August for the purchase and sale of shares representing 91.99% of the capital stock of Vigor, including Itambé.

Meanwhile, Lala will continue with negotiations to acquire 8% of Vigor's shares from Danish dairy company Arla Foods International, increasing its stake to 99.9%.

"Lala will continue with negotiations to acquire 8% of Vigor's shares from Danish dairy company Arla Foods International, increasing its stake to 99.9%."

If CCPR successfully acquires a 50% stake in Itambé, the new scope of the transaction would be the acquisition of up to 100% of Vigor's stake for a net implied value of BRL4.325bn ($1.38bn).

LALA will obtain funding and additional capitalisations as part of the financial package for these acquisitions.

Vigor has more than 7,600 employees, 11 milk collection centres, 14 production plants, 31 distribution centres, and 67,000 points of sale in Brazil.

With more than 65 years of experience in the production, innovation and marketing of milk and dairy products, Lala operates 22 production plants and 160 distribution centres in Mexico, the US and Central America.