Unternehmensgruppe Theo Müller has confirmed it is in talks to acquire local dairy peer Vogtlandmilch.
A spokesperson for the German dairy group told Just Food discussions are under way with Vogtlandmilch's management and supervisory board over a possible takeover of the company, including its facility in Plauen.
"The discussions are at an early stage. Any potential transaction would also be subject to the necessary competition law approvals," the spokesperson said, adding the company was "unable to comment further at this stage".
Vogtlandmilch is headquartered in Plauen, the principal city of Saxony's Vogtland region in the south-west of the state, near the borders with Bavaria and the Czech Republic.
The company was established in 1928 and has about 150 employees at its Plauen plant, according to its website.
It processes milk from approximately 150 farms located within an 80km radius across Vogtland, western Saxony and eastern Thuringia.
Its range includes quark, UHT milk, butter and buttermilk sold under the Vogtlandweide, Sachsenland brands as well as Joe Clever, a brand sold in local schools.