General Mills has agreed to buy Pillsbury from British foods company Diageo (dee-AZH-ee-oh). Minnesota Public Radio's Andrew Haeg reports. The announcement came at the start of the business day in London: Diageo agreed to sell Pillsbury to General Mills for a total of 10-point-five billion dollars in cash, stock and debt. The deal is expected to be completed by the end of the year, thereafter General Mills will become the world's fifth-largest food company, with nearly 13-billion dollars in annual sales. In a statement General Mills said it will cut some jobs. It will sell off Pillsbury's North American Green Giant canned vegetables division. It also said it would sell Pillsbury's North American baked goods division. And the company says it plans to cut general and administrative staff in the next two years. But did not say how many people will lose their jobs. General Mills employs 38-hundred people in the Twin Cities; Pillsbury 32-hundred. The merger will almost double General Mills in size. It also brings a major corporate headquarters home to Minnesota, after a string of departures. General Mills management says its optimistic that by acquiring Pillsbury's brands, like refrigerated dough boy products and Haagen Dazs ice cream, it will become a contender in an increasingly global and competitive food industry.