Big M is one of the brands in the former National Foods stable, now owned by Kirin Foods, and a part of the Lion Dairy group.
It is understood that Bega is in the process of negotiating a deal to buy Lion Dairy, or at least part of it.
Big M was launched in 1977 by the former Victorian Dairy Industry Authority and proved to be one of the most successful marketing campaigns for milk in Australia.
Lion Dairy comprises brands including Farmers Union, Dare, Vitasoy and Pura.
Lion purchases around 1 billion litres of milk from more than 550 Australian farms each year.
Shares in the dairy company, Bega, have been placed in a trading halt on the ASX, pending a company announcement on capital raising.
Shares in Bega Cheese were suspended on Monday, and are expected to resume trading by Friday, or whenever the company makes an announcement about its plans.
Shares last traded at $5.06.
Bega reported a modest after tax net profit of $31 million for the last financial year, off a total revenue of $1.5 billion, up five per cent over 2018-19 due to strong sales in its international grocery market which grew by 15.1 per cent.
Earnings before income tax fell two per cent to $103 million, down almost two per cent from $104.8 million.
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