Vinamilk, the country’s leading dairy processor, has been in negotiations over the acquisition of a milk processing plant in Europe, said Mai Kieu Lien, chairwoman and general director of the firm, at the recent annual general meeting.

Lien said Vinamilk had been in talks with two partners in Europe to buy the facility but they had yet to come to a conclusion. She added that the firm would continue focusing merger and acquisition (M&A) activity following the success of a deal to buy Driftwood facility in the U.S. Vinamilk now owns 70% of Driftwood Dairy Holdings Corporation.

This year, the local company wants to spend VND4 trillion (US$186 million) enhancing M&A activity, expanding market share, developing material areas and raising production capacity. However, those plans must secure approval from the firm’s board members.  

Vinamilk also holds a 51% stake at Angkor Dairy Products in Cambodia, a 19.3% stake at Miraka Limited in New Zealand and a 15% stake at Asia Saigon Food Ingredients Joint Stock Company in Vietnam.

Lien said this year and next Vinamilk would continue to spend more on advertising, promotion and sales programs to maintain its market share.

Vinamilk now holds an 84% domestic market share.