Sept 12 - General Mills ( GIS ) will sell its North

America yogurt business to French dairy firms Groupe Lactalis

and Sodiaal in a $2.1 billion deal, the Cheerios maker said on

Thursday.

Lactalis will acquire the U.S. business and Sodiaal will buy

the Canadian unit, the company said.

Reuters reported in April that General Mills ( GIS ) was working

with investment bank JPMorgan Chase ( JPM ) to attract interest

from potential buyers for the business, which houses brands such

as Yoplait and Liberté.

Yoplait is facing tough competition in the U.S. from

privately held yogurt brand Chobani, as well as Danone's

Dannon brand.

The North American Yogurt business contributed about $1.5

billion to General Mills' ( GIS ) fiscal 2024 net sales.

Packaged food makers are divesting units not delivering high

growth to rein in costs and focus on expanding their core brands

as they respond to consumers seeking cheaper alternatives.

Bloomberg News earlier on Thursday reported that General

Mills ( GIS ) was in talks to sell the North America yogurt operations,

to French dairy firms Groupe Lactalis and Sodiaal.

(Reporting by Juveria Tabassum and Ananya Mariam Rajesh in

Bengaluru; Editing by Vijay Kishore and Sriraj Kalluvila)