General Mills plans to raise $2 billion by selling yogurt division

General Mills Inc, one of the world's largest food giants, is in advanced talks to sell its yogurt business in North America for more than $2 billion. The move would include the sale of operations in the U.S. and Canada that include the well-known Yoplait brand, and reportedly the buyers could be French dairy companies Groupe Lactalis and Sodiaal.

This potential sale is a significant strategic move by General Mills $GIS and reflects current trends and challenges in the dairy industry.

Decision to exit the yogurt market in North America

The reasons for exiting this market in North America are varied, but the key factor is increasing competition. In the US market, General Mills faces competitors such as Danone and Chobani, which have significant market share and are creating an environment where it is increasingly difficult to maintain dominance. Analysts at Bloomberg Intelligence, Jennifer Bartashus and Jibril Lawal, said in a May report that limited expansion opportunities in that market…