The Californian-based winemaker E&J Gallo has confirmed it has made a US$6m for Grapeco winery of Madera, which is in bankruptcy court, the local press said.

A company spokesman was quoted as saying that Gallo is among the bidders for the 106-acre Grapeco facility.

The 106-acre winery and its owner, Michael Hat of Manteca, have been in bankruptcy proceedings since last year. Gallo's bid is subject to court approval.

If the deal for Grapeco goes through, Gallo would control a vast majority of the grape concentrate processing business.