Concha Y Toro has acquired its smaller rival Vina Francisco de Aguirre for around US$17m.

In a statement the Chilean winemaker said: "The transaction included its lands, winery, brands, machinery, supplies and barrels," Concha y Toro said.

It added that the acquisition was part of its expansion plans, in light of growing foreign demand for Chilean wines, it said.

Vina Francisco de Aguirre is one of the few wineries operating in the northern Fourth region. Most wine grapes in Chile are farmed near or south of Santiago.