Milan, Aug 7 - Italian dairy group Parmalat said it had dropped out of talks on a joint bid for Dairy Farmers, effectively ending its ambitions to buy the Australian dairy producer.
Parmalat said in a statement on Thursday "no mutually satisfactory resolution on terms and conditions" had been reached with Australian farmers' co-operative Murray Goulburn on a consortium that would have bid for Dairy Farmers.
Dairy Farmers, which is owned by some 2,000 Australian farmers, put itself up for sale in April. Analysts have estimated a deal could be worth between A$800 million and A$1 billion.
Australia's competition watchdog had raised concerns about Parmalat's bid for Dairy Farmers, while clearing a rival bid by National Foods, owned by Japan's Kirin Holdings.
Both companies needed approval from the regulator as they have extensive operations in the country.
Chief Executive Enrico Bondi has said Parmalat could re-evaluate its position in Australia depending on the outcome of its bid for Dairy Farmers.
National Foods is teaming up with Australia's Warrnambool Cheese and Butter Factory. A source close to the matter said it had lodged a final bid for Dairy Farmers.