Summary
Keurig Dr Pepper has agreed to buy the Dutch coffee company, JDE Peet's, for about $18.4 billion, marking the largest European deal in over two years. The merger will split the companies into two separate U.S. firms focusing on coffee and soft drinks. Concerns about the shift in strategy caused Keurig Dr Pepper's shares to drop more than 7%.
Key Facts
- Keurig Dr Pepper will buy JDE Peet's for €15.7 billion (around $18.4 billion).
- This is the biggest acquisition in Europe in over two years.
- The merger will create two separate U.S. companies: one for coffee, one for soft drinks.
- Keurig Dr Pepper shares fell more than 7% following the announcement.
- The coffee business will operate out of Massachusetts, and the soft drink business will be based in Texas.
- JDE Peet's has faced high coffee bean prices due to droughts in major producing countries.
- The merger is intended to diversify and strengthen the coffee business globally.
- JAB Holding Co, which owns a large stake in JDE Peet's, stands to benefit from the deal.
