Keurig Dr Pepper Initiates $18 Billion Takeover Bid For JDE Peet's – CoffeeTalk

Keurig Dr Pepper has initiated an $18 billion all-cash bid to acquire JDE Peet’s, a significant move to establish a formidable global coffee company potentially rivaling industry leader Nestle. The offer is set at 31.85 euros per share, with JDE Peet’s board and a majority of shareholders expressing commitment to accept the proposal. The transaction is expected to finalize in the second quarter of the coming year.

This acquisition marks one of Europe’s largest buyouts in recent times, amid surging global coffee prices driven by drought conditions in major producing countries like Brazil and Vietnam, along with tariff impositions by the U.S. government under President Donald Trump. These external factors have significantly impacted coffee bean pricing, prompting consolidation in the coffee sector.

Additionally, Keurig plans to segment the merged company’s operations, separating coffee and beverage segments, including Dr Pepper sodas, into two publicly traded entities. To facilitate the purchase, Keurig secured $7 billion in financing from private equity firms, addressing investor concerns related to increasing debt levels.

Following the acquisition announcement on August 25, shares of JDE Peet’s have displayed minimal fluctuations during early trading sessions, maintaining stability around 31.92 euros, which corresponds to a market capitalization of approximately 15.6 billion euros ($18.15 billion). The companies have also affirmed that they have secured the necessary regulatory approvals and that the board of JDE Peet’s has unanimously endorsed the deal, with investors holding 69% of shares irrevocably committing to the acquisition.

Read More @ Reuters