Coles supermarket buys Saputo milk processing plants for $105m

Coles drove milk prices down for a decade, now it is buying the factory. (ABC News)

Supermarket chain Coles will become a milk processor for the first time, buying two milk factories in Victoria and New South Wales from Canadian dairy giant Saputo for $105 million.

Coles has announced to the Australian Stock Exchange Monday that it will buy the sites at Laverton in Melbourne's suburbs and Erskine Park in Sydney's suburbs.