The French food and drinks group, Danone, and the Japanese drinks group, Suntory, have announced that they have reached an agreement to form a joint venture in the home-delivery water sector (HOD) in the US.

Danone said the joint venture would combine the operations of the Suntory Water Group and the US HOD activities of Danone Waters of North America, with each company holding a 50% stake. The deal is expected to be completed in the autumn.

Financial terms of the deal were not disclosed but Danone said the company would have annual revenues in excess of US$800m and would be the largest HOD operation in the world.

The company's brands will include Crystal Springs, Sparkletts and Alhambra.