KEURIG DR PEPPER to purchase the Dutch Coffee Company JDE’s at the expense of $ 18 billion

Keurig Dr Pepper will receive a Dutch coffee and a JDE peet’s tea company about $ 18 billion, which can give an incentive for the US giant combat business, two companies said on Monday.

The transaction first reported The Wall Street Journal.

Keurig Dr Pepper will pay JDE Peet shareholders 31.85 euros ($ 37.3) per stock, which is 33% of the award for a 90-day average stock price, which presents a total stock of 15.7 billion euros ($ 18.4 billion). Meanwhile, the will of JDE Peet pays a previously announced dividend of 0.36 euros per share before closing the transaction.

The absorption is expected to lead to $ 400 million in the cost of synergies for three years.

JDE Peet’s increased by 17.18% at 08:30 in London (3:30 et).

Keurig Dr Pepper, who owns such brands as Dr. Pepper, 7up, Snapple and Green Mountain Coffee, noticed that the second quarter decreased sales in the US division, decreasing by 0.2% to 900 million dollars in the second quarter due Keurig.

Keurig Dr Pepper is looking to lift their appeal with savings buyers who prefer to drink coffee at home while daring to cold coffee, trying to attract Starbucks and Dunkin Cliente.

After acquiring JDE Peet, Keurig Dr Pepper intends to share their drinks and coffee units as two separate companies that list the United States at the earliest capabilities. Such a step effectively unwound would Merger of 2018 Between Kevrig and Dr. Pepper Snapple, which at the time created the third largest drink company in North America, about $ 11 billion in annual income.

After the division, the coffee company is supposed to include $ 16 billion in combined annual net sales and will be headed by the current Keurig Dr Pepper Sudhanshu Priyadarshi.

Meanwhile, the drink firm is supposed to have $ 11 billion with annual net sales and will be used by the current CEO Keurig Dr Pepper Tim Cofer.

JDE Peet CEO, Rafael Oliveira, will remain in his post to stuff the Dutch coffee company until the purchase closes.

– Victor Loch CNBC contributed to this report