Bright Food Group, the largest food and dairy producer in Shanghai, is mulling a deal to buy Australia’s Treasury Wine Estates, Bloomberg reported, citing two anonymous sources familiar with the matter. The privately-held milk producer has been conducting internal conversations about acquiring the Melbourne-based company. Treasury is Australia’s largest vintner, owning a portfolio of brands that includes Australian labels Penfolds and Lindemans, and also Califorina’s Beringer brand. Treasury was split off from its parent company Foster’s Group (FSG.ASX) on May 10 to allow Foster’s to concentrate on its beer business. Treasury’s estimated market value is US$2.4 billion, although Foster’s already rejected a US$2.8 billion offer for the unit last year, saying the bidder “significantly” undervalued the business. Bright Food is planning to raise as much as US$928 million this year by selling bonds and listing a subsidiary to fund acquisitions. It already tried and failed to acquire 50% of French yogurt maker Yoplait (currently owned by General Mills; GIS.NYSE) in March.