The world’s largest yogurt maker, Danone, is considering a sale of its 20 percent stake in Yakult Honsha of Japan which is worth approximately 1.26 billion pounds ($2 billion).

Last year, Yakult which makes fermented milk drinks and Danone scrapped a nine-year alliance replacing it with a looser cooperation framework. This move dampened speculation that Danone might seek to acquire the Japanese company.

Sale of the Yakult stake could help Danone raise cash as it seeks to diversify away from slow-growth in Europe and bolster its declining earnings.

President of a Tokyo-based investment advisory firm, Value Search Asset Management Company, Minoru Matsuno said that the news about Danone seems to have triggered the recent selloff of Yakult shares. Recent gains by Yakult had made the stock overvalued.

Yakult’s market value is approximately $9.4 billion (1.1 trillion yen), making the stake worth around $1.9 billion. This sale would end Danone’s 10-year-old agreement with Yakult. Yakult fermented and probiotic milk drinks are similar to offerings from the French company.

Danone who is the maker Evian water and Activia yogurt had previously considered increasing its holding in Yakult; however, this move was opposed by the Japanese company. Despite a renewal of the pact in 2013, that removed a limit on the size of its stake, Danone in Yakult has not boosted its shareholding.

According to sources, the French yoghurt company is also discussing a sale of its medical-nutrition business with potential suitors which include several buyout firms and Fresenius SE.

Yakult was founded in 1955, and it operates in the cosmetics, food and beverages and pharmaceuticals sectors. Yakult began its overseas expansion in 1964 and currently it sells its products in 30 countries including Mexico, South Korea and China.

Shares of Danone dropped by 0.9 percent to 55.61 euros, while Yakult dropped by 10 percent. In 2014, the shares have increased by 6.3 percent.