The French government has reacted coolly to the talks that could see US group General Mills buy PAI Partners’ 50% stake in dairy business Yoplait.
“The government takes note of this decision and reaffirms its concern that the future of France’s dairy sector and of jobs be preserved,” a joint statement issued by finance minister Christine Lagarde and agriculture minister Bruno Le Maire said on Friday (18 March).
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Paris said it was “looking to Yoplait’s shareholders to implement a development plan which puts the accent on employment, innovation and dairy production”.
It concludes that French state investment vehicle, the Fonds Stratégique de Développement (FSI), is “examining the possibility of contributing to the investment project for Yoplait”.
On Friday, General Mills said it was in exclusive talks to buy into Yoplait, the dairy firm owned by private-equity fund PAI and French dairy co-op Sodiaal.
General Mills already owns the US licence to Yoplait and its announcement suggested an imminent end to one of the most fiercely competitive takeover battles in the food industry in recent months. PAI’s stake attracted nine bidders from across the food industry and the financial sector.
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By GlobalDataUnder General Mills’ plan, which values Yoplait at EUR1.6bn (US$2.27bn), two structures would be created – an operating company and an entity that owns the brand rights.
General Mills wants to take a controlling role in the operating company and a 50% interest in the entity that owns the Yoplait brand.
Sodiaal will take a minority stake in the operating company but hold the other 50% in the brand-owning entity.
