The two largest dairy interests in the US are set to merge. Suiza Foods has confirmed it is to acquire Dean Foods in a deal worth US$2.5bn. Suiza will pay US$1.5bn in cash and stock while also assuming US$1bn of Dean Food's debt. The new company, which is to be called Dean Foods but based in Suiza home city Dallas, will generate enormous sales of around US$10bn. This equates to over 30% of the milk consumed within the US, heralding a major change for the US$25bn market traditionally dominated by smaller, local companies.