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Keurig Dr Pepper (KDP) announced Monday it will acquire Dutch coffee giant JDE Peet's for €15.7 billion ($18.4 billion) in cash, marking a major shift in the global coffee and beverage industry, CNBC said.

The offer comes at a 20% premium over JDE Peet's market value as of last week. Shares of JDE Peet's surged by 18% after the news, heading for a record-breaking trading day.

The US-based KDP plans to divide its operations following the acquisition, creating two new publicly traded companies: Beverage Co., focused on North American drinks, and Global Coffee Co., aiming to dominate the global coffee market.

The current CEO of KDP, Tim Cofer, will lead Beverage Co., while Chief Financial Officer Sudhanshu Priyadarshi will head Global Coffee Co.

"Today's announcement marks a transformational moment in the beverage industry," said Cofer. "We're building two strong companies, including a global coffee leader. This is the right time for this move."

With an estimated $16 billion in combined annual net sales, Global Coffee Co. will serve more than 100 countries.

Its portfolio will include well-known brands like Jacobs, L'Or, Tassimo, Douwe Egberts, and Green Mountain Coffee. Beverage Co. will manage over $11 billion in yearly sales and focus on top US brands including Dr Pepper, 7UP, and Snapple.

Keurig Dr Pepper Valued at $48B Ahead of Blockbuster Coffee Acquisition

Rafa Oliveira, CEO of JDE Peet's, praised the merger, saying, "This transaction will deliver great value to our shareholders and open up new growth for our team. Together with Keurig, we look forward to a new era of coffee leadership."

The coffee industry is currently facing challenges with rising coffee bean prices due to extreme weather and trade tariffs.

According to Reuters ,Arabica and Robusta beans have reached record highs in 2025, influenced in part by a new 50% US import tax on Brazilian beans.

Keurig Dr Pepper, which formed in 2018 from a merger between Keurig Green Mountain and Dr Pepper Snapple, is currently valued at $48 billion.

JDE Peet's, listed in Amsterdam, was valued at €12.76 billion before the acquisition news.

The deal positions the new Global Coffee Co. to compete in the growing $400 billion global coffee market while Beverage Co. takes on North America's $300 billion refreshment segment.