Sydney, June 4 - Australia's Warrnambool Cheese and Butter Factory said on Wednesday it and National Foods, owned by Japan's Kirin Holdings, would jointly pursue a bid for Australian dairy producer Dairy Farmers.
Dairy Farmers, which is owned by some 2,000 Australian farmers and makes Dairy Farmers brand milk, Coon cheese and Ski yoghurt, put itself up for sale in April. Analysts have estimated a deal could be worth between A$800 million and A$1 billion ($762-$952 million).
National Foods is one of three parties to have sought regulatory clearance to buy Dairy Farmers. A ruling on the National Foods bid is expected by July 3.
If successful in acquiring Dairy Farmers, National Foods will form a joint venture with Warrnambool to run the cheese business of Dairy Farmers, the companies said.
They added the process was at a preliminary and non-binding stage and there could be no guarantee that an acquisition will occur.
Shares in Warrnambool jumped after the announcement, last trading up 4.55 percent at A$4.60
First-round offers in the sale process, which is being run by Goldman Sachs JB Were, have closed. Dairy Farmers will assess the bids before inviting second and final offers.
Two other groups have sought regulatory clearance to bid -- New Zealand dairy cooperative Fonterra and Italian dairy firm Parmalat , which is bidding together with Australian farming cooperative Murray Goulburn.
Analysts have said other potential bidders include Australian food group Goodman Fielder and Singapore's Olam International . ($1=A$1.05)