Dean, Suiza complete merger. (Acquisitions).

A new leading processor of fresh milk and other dairy products in the U.S. has been created with the completion of the merger between Dean Foods and Suiza Foods.

The new company, to be called Dean Foods, will have about $10 billion in annual revenues and will operate 129 plants in 39 states. The combined company began trading on the New York Stock Exchange in Dec. 24, opening at about $68 a share.

To gain the approval of antitrust regulators, Dean and Suiza had to divest 11 dairy processing plants in eight states. The plants will be acquired by a holding company half-owned by Dairy Farmers of America, the nation's largest agricultural cooperative. Regulators were concerned that in many school districts, Suiza and Dean are the only two companies that bid to sell milk.

"These divestitures ensure that consumers of milk, an American staple, continue to get the benefits of competition - increased choices for consumers resulting in lower prices and better service," Charles James, the U.S. Justice Department's antitrust chief, said in a statement.

The company will be headquartered in Dallas, site of the former Suiza headquarters, and will be led by Gregg Engles, who had served as CEO of Suiza.

"We are extremely pleased to have completed the merger, and we will be intently focused on integrating the companies in 2002, bringing together our complementary operations quickly and delivering on the promise of this merger for our customers, shareholders and employees," Engles said in a statement.

In other merger/acquisition news:

* Nestle USA has acquired the 50 percent stake belonging to General Mills in Ice Cream Partners USA, their joint venture. Nestle and Pillsbury had entered into the partnership in 1999 to combine Pillsbury's Haagen-Dazs line with Nestle's frozen novelty business. Pillsbury's acquisition by General Mills triggered a buyout option, which Nestle exercised. The $641 million deal gives Nestle a 99-year license to use the Haagen-Dazs brand for frozen desserts.

* Snow Brand Milk Products Inc., Japan's largest dairy product maker, will merge its frozen foods division with Itochu Corp., a major trading house.

* Aladdin Food Management Services, a Wheeling, W.Va.-based institutional foodservice provider, has been acquired by J.H. Chapman Group LLC, which bills itself as the food industry's leading investment banking firm.