(Yicai Global) Jan. 2 -- Fonterra Cooperative Group and Chinese partner Beingmate Baby & Child Food are terminating their cooperation at a dairy plant in Darnum Park, Australia, after ties between the pair turned sour.

The New Zealand dairy giant plans to buy Beingmate's 51 percent share in the factory and related assets for AUD120 million (USD84.4 million), the Hangzhou-based seller said in a statement yesterday. The boards and shareholders of each firm are yet to consent to the agreement.

Beingmate agreed to invest AUD102 million in Darnum, Victoria state, in 2015, with AUD82 million going toward its stake in the plant and the remainder on other assets. Around the same time, Fonterra spent AUD750 million (USD526 million) for an 18.8 percent stake in Beingmate, making it the Chinese dairy firm's second-largest shareholder.

But their relationship took a turn for the worse in 2016 as Beingmate's share price began to decline. It currently sits at CNY5.05 (74 US cents), down from an all-time high of CNY29.89 in June 2015. Fonterra paid around CNY18 per share when it bought into the company.

After Fonterra takes over at Darnum, Beingmate will buy 300 tons of base powder for infant formula milk powder each month from the factory under a new agreement. The plant is capable of producing around 70,000 tons of milk powder every year, 60,000 tons of which are baby formula.

Editor: James Boynton