Danone plans to sell its Stonyfield organic yogurt brand to fellow French dairy giant Lactalis as part of an agreement with U.S. antitrust regulators.
The parent company of Dannon yogurt last year reached a deal to acquire organic food company WhiteWave for $12.5 billion, but the Justice Department indicated that it would approve the purchase provided Danone sold Stonyfield.
DOJ officials worried than adding WhiteWave to Danone’s existing operations would limit competition in the organic milk market. Stonyfield, based in New Hampshire, was the top U.S. organic yogurt producer, and Danone previously partnered with another organic food company.
The agreement announced Monday would sell the brand for $875 million; the sale is expected to be finalized in the third quarter of the year.