Dutch dairy business FrieslandCampina is taking a majority stake in Indonesian peer PT Ultrajaya Milk Industry.
FrieslandCampina described the deal as a "strategic partnership", which will involve the cooperative's Frisian Flag Indonesia (FFI) milk and flavoured drinks unit being folded into Ultrajaya.
Under that part of the transaction, Ultrajaya will assume ownership of FrieslandCampina's 78.09% holding in FFI.
The co-op's partners - Blue Waves Group Ventures (BWG) and PT Bahtera Wiraniaga Internusa - will transfer their shares in FFI to Ultrajaya in exchange for a rights issue.
Ultrajaya, which will remain listed on the Jakarta Stock Exchange post the transaction, is issuing more than 7.8 billion shares priced at Rp2,150 ($0.12) each under the rights issue offering.
FrieslandCampina, which owns brands such as Milner cheese and Chocomel drinks, said in a statement: "FFI will join a broader, more resilient platform serving consumers across the archipelago.
"This step supports FrieslandCampina's mission to nourish children and families in Asia by growing access to the goodness of dairy nutrition. Both companies will continue to operate alongside each other as separate ...