General Mills Close To Buying Yoplait Stake

General Mills GIS, the second-largest U.S. food company by market value, is reportedly close to acquiring 50% of Yoplait Yogurt from private equity PAI Partners for $2.25 billion. The news was originally reported by the French daily Le Figaro and then Bloomberg News, which cited sources familiar with the deal.

Earlier this month, General Mills was said to be in a battle with Switzerland-based Nestle NSRGY, the world's largest publicly traded food company by market cap, to acquire the Yoplait stake. Yoplait is the No. 2 yogurt brand in the world, a level it rose in part because of distribution agreement with General Mills where the Minnesota-based company distributes the brand in the U.S.

An announcement on the deal could come as soon as Friday, Bloomberg reported. Earlier this month, General Mills and Nestle were believed to have each offered $2.2 billion for PAI's Yoplait stake. Nine companies reportedly submitted bids and there was speculation that French authorities might lean on PAI to sell its investment to a French company.

Sodiaal, which founded Yoplait, owns the other half of the yogurt maker and has said it doesn't plan to sell its shares, Bloomberg reported.