Bright Dairy & Food Co. announced Monday that it will buy a 51-percent stake in New Zealand milk producer Synlait Milk Ltd., the China Securities Journal reported.

Bright Dairy, a leading dairy brand in China, will invest about 382 million yuan (US$56.38 million) to purchase more than 26 million of Synlait's new shares.

Synlait, founded in 2005, was the milk supplier and shareholder of New Zealand dairy giant Fonterra before becoming an independent dairy product exporter in 2007. Synlait is one of five independent milk processors in New Zealand.

Currently the Japanese company Mitsui & Co. holds 22.5 percent of Synlait. The three founders of Synlait hold a 34.3-percent stake. The rest is held by 87 minor shareholders. After the transaction, Bright Dairy will become Synlait's controlling shareholder and hold four of the seven board seats at Synlait.

The deal still needs the approval of the shareholders of both sides, the board of directors of Bright Food Group and regulators in both China and New Zealand.

China's business press carried the story above on Monday. China.org.cn has not checked the stories and does not vouch for their accuracy.