As forecast [WAMN, 13-Jul-00], General Mills has agreed to acquire its Minneapolis neighbor, the Pillsbury subsidiary of UK-based Diageo for up to $10.5 billion in stock and cash.

Following approval by the boards of both companies, the deal will be announced today in London and New York. It will virtually double the size of General Mills, lifting annual sales to around $13 billion, making it third-largest food company in North America and the fifth-largest in the world.

Pillsbury’s Haagen-Dazs ice cream, Green Giant frozen foods and Old El Paso Mexican foods will join GM’s portfolio of leading brands which include Cheerios cereal, Yoplait yogurt and Betty Crocker cake mixes.

News source: Wall Street Journal