According to today's Australian Financial Review, National Foods and bid partner Warrnambool Cheese and Butter were last night finalising the purchase of Dairy Farmers, which has been subject to a bid process which drew interest from numerous dairy companies from around the world.

If successful, the AFR says the new combined group would have a range of powerful brands including Dairy Coon and Cracker Barrel cheese, and Moove flavoured milk.

National Foods, a subsidiary of Japanese brewing giant Kirin Holdings, already owns the Pura milk and Berri juice brands.

But the bid is first subject to approval by the 2000-plus Dairy Farmers' shareholders.

The AFR says the new development puts an end to a stand-alone bid by Murray Goulburn.