London-headquartered food and drink conglomerate Diageo is in serious discussions to merge its Pillsbury food division with General Mills of the USA in a deal valued at about $11 billion. Diageo would retain a large minority stake in the combined company, say close observers.

A merger would create a formidable portfolio of global brands, combining Pillbury’s Haagen-Dazs ice cream, Green Giant frozen foods and Old El Paso Mexican foods with General Mills' Cheerios, Lucky Charms and Betty Crocker cake mixes.

No comment on the deal was forthcoming from either company.

News source: Wall Street Journal