China's Bright Food (Group) Co Ltd announced an agreement to acquire Australian dairy producer Mundella Foods to expand the state-run firm's international reach. The purchase will be done through Bright Food's Australian subsidiary, according to Reuters.

In 2011, Bright Food bought Australian company Manassen Foods. On Tuesday, Bright Food spokesman Pan Jianjun said Manassen entered an agreement to purchase Mundella, the report detailed.

According to Pan, the terms of the acquisition deal are yet to be finalized after the 2013 financial results of Mundella are released, the report added.

Australian dairy companies have attracted growing interest from suitors because of the surging sales of milk, cheese, and other dairy products in Asia, the report stated.

Established in 1974, Mundella is a producer of yoghurt, probiotic yoghurt drinks, and soft cheese. In 2010, the company started exporting its products to Asia. Mundella presently has a contract to supply sour cream to Australian supermarket chain Coles, Reuters reported.