General Mills cereals are displayed on a kitchen counter in Golden, Colorado December 17, 2009. REUTERS/Rick Wilking

After months of tense negotiations that involved members of the French government, management disputes and influence from an agricultural lobby General Mills is set to pay $1.12 billion for private equity fund PAI Partners half of the Yoplait yogurt brand.

The General Mills bid was attractive for several reasons. It has a long standing relationship with Yoplait, holding the license for the companies yogurt in the United States since 1977. General Mills was also able to pay for the transaction off its balance sheet. Sodiaal, which controls the other half of Yoplait, was also attracted to the idea that General Mills could use its international reach to boost sales in emerging markets, particularly India and China.

For its part General Mills protects its U.S. distribution rights and eliminates the risk of a competitor edging in on that business. The Deal Journal has some early market reaction.

News that Groupon could be valued as high as $25 billion is being met with skepticism.

A source familiar with the matter told Reuters the site was unlikely to command such a lofty valuation so shortly after it turned down a $6 billion buyout offer from Google in December.