French group Danone and Swiss-based Eden Springs have agreed to combine their water cooler bottle supplies operations in Europe to capture a total market share of 20% in the region.

Danone will hold 53.2% of the new company plus 50% of voting rights with an option to buy Eden Springs' entire stake from January 1, 2008.

Danone said the Eden Springs will be the home office deliveries market leader in France, Spain, Switzerland, Finland, Norway and Sweden.