Keurig Dr Pepper agreed to buy Dutch coffee group JDE Peet’s in an all-cash deal valued at €15.7 billion ($18.4 billion), or €31.85 a share—about a 20% premium to JDE Peet’s last close. The transaction, one of Europe’s largest in more than two years, expands the U.S. beverage maker’s presence to more than 100 countries and adds brands such as Douwe Egberts, Jacobs and L’OR to its single-serve coffee franchise. The company said it has arranged a bridge loan of up to €16.2 billion and may issue euro-denominated bonds to fund the purchase. Ratings agency S&P Global placed Keurig Dr Pepper on negative credit watch, warning leverage could rise to the mid-to-high-5× range and signaling a possible one-notch downgrade to BBB- once the deal closes. After completion, expected in the first half of 2026 subject to regulatory approvals, Keurig Dr Pepper will separate into two U.S.-listed businesses: Global Coffee Co., housing the combined coffee portfolio and roughly $16 billion in annual sales, and Beverage Co., focused on cold drinks such as Dr Pepper and Snapple with about $11 billion in revenue. Management projects $400 million in cost savings within three years, effectively unwinding the 2018 Keurig-Dr Pepper merger to create more focused growth vehicles. The enlarged coffee operation would rival market leader Nestlé, giving Keurig a broader international footprint as the industry grapples with rising bean prices and U.S. tariffs on major producing nations. Majority investor JAB Holding, which owns stakes in both companies, backed the transaction, saying the combined scale positions it for further consumer-goods investments.