One of Estonia's largest dairy producers United Estover Group is set to acquire the Saaremaa Dairy to boost the group's output and competitive ability in Estonia and abroad.
The transaction needs the green light from the Saaremaa Milk Cooperative and the Competition Authority to go ahead, SEB bank that is funding the transaction said.
"The cooperation agreement allows us to get the purchase and sale process going, which will in turn help the only two remaining cheesemakers based 100 percent on Estonian capital to move toward their goals," Ago Teder, member of the board at Estover, said.
The Saaremaa Dairy (Saaremaa Piimatööstus) buys milk on the western Estonian islands of Saaremaa and Hiiumaa and turns it into cheese, butter and other dairy products. Teder said that all Saaremaa Dairy products will be available after the deal takes place.
Editor: Marcus Turovski