The acquisition of Pillsbury, the packaged-foods unit of drinks group...

The acquisition of Pillsbury, the packaged-foods unit of drinks group Diageo PLC, by General Mills Inc. was given antitrust clearance by the European Commission, as per reports. The deal was worth $10.5 billion. The purchase of Pillsbury by General Mills Inc., for $10.5 billion, has received antitrust clearance from the European Union's regulators. In their approval, issued on Monday, the regulators stated that the companies' product ranges are "largely complementary." With this acquisition, General Mills' size will nearly double, as it adds brands such as Cheerios cereal, Yoplait yogurt, and Betty Crocker cake mixes. This deal will make General Mills the fifth-largest food company globally. The purchase was agreed upon in July and was made in cash and shares. Under the deal, Diageo PLC, the drinks group that owns Pillsbury, is expected to retain around 33% of the combined General Mills-Pillsbury entity and receive two board seats. To prevent Diageo from taking over General Mills, the two companies are anticipated to sign a standstill agreement.

Sunday, 15 October, 2000