OTHER NEWS - May 13, 1992

Food Giants in Joint Venture: Pepsico Inc. and General Mills Inc. have agreed to merge their snack-food operations in six European countries in a deal that lets each partner rapidly expand on the continent. Each firm will contribute assets but no cash. The deal would combine into a $640-million company Pepsico’s salty and sweet snack businesses in Spain, Portugal and Greece with similar General Mills’ businesses in France, Belgium and the Netherlands. Products from the new venture will continue to be marketed under their current brand names, which include Ruffles, Doritos and Cheetos. The venture would be 60% owned by Pepsico’s Foods International unit, which would be responsible for day-to-day management, and 40% by General Mills.