Saputo Inc. (TSX:SAP) is set to announce a sizeable acquisition target in Australia, and some are pointing to Jalna Dairy Foods Pty. Ltd. or The a2 Milk Company (Australia) Pty Ltd. Jalna is one of the country's best-known Greek yoghurt brands and has been for sale through PwC. However, while it is a logical target, it is not particularly large, with a turnover of about $130 million.

As well as the yoghurt business, which includes a plastics factory that manufactures yoghurt tubs and lids, Jalna also owns a 2000 acre dairy farm in northern Victoria, thought to be worth about $12 million. A2 Milk has a $3.8 billion market value, which would be a large deal for Saputo. Shares in A2 Milk have been languishing since May, following a collapse in sales to China.

It has been discussed as a takeover target for some time. However, some believe that a purchase of the business would be a departure from Saputo's strategy. Limited synergies exist, with A2 Milk producing milk with only the A2 beta casein protein.