General Mills Close To Buying Yoplait Stake (GIS)

According to the Wall Street Journal, General Mills GIS is closed to buying a majority stake in yogurt maker Yoplait for $2.22 billion.

The deal has drawn political interest, and a deal with General Mills would be easier to get done. The French government has deemed yogurt a strategic asset. China's Bright Foods had the highest offer at €1.7 billion, but the offer €1.6 billion is likelier to get done.

French investment fund PAI Parnters is the one selling the 51% stake. The fund declined to comment.

Yoplait is the world's second-largest yogurt maker after Danone SA, whose yogurt is marketed as Dannon in the U.S. The other 49% stake of Yopalit is owned by French cooperative dairy group Sodiaal.

General Mills has already manufactured and distributed Yoplait products for 30 years in the U.S., the yogurt's biggest market, so it makes sense for General Mills to own the majority stake.

Nestlé SA, Mexico's Grupo Lala, Axa Private Equity and French dairy company Groupe Lactalis are the other bidders.

Shares of General Mills are down 10 cents to $35.95 today.