Keurig Dr Pepper, a new giant in the global beverage industry

Keurig Green Mountain has bought Dr Pepper Snapple in an $18.7 billion cash transaction, creating a hot and cold beverages giant capable of competing with market leaders such as Nestlé.

Keurig Dr Pepper, as the new company is known, is owned 87% by Keurig and 13% by Dr Pepper Snapple. It is listed on the New York Stock Exchange and has a turnover of $11 billion.

Keurig is currently the fourth largest coffee distributor in the United States with a 7.4% market share, while Dr Pepper is the third largest soft drinks group in terms of sales with an 8.5% share.

The synergies achieved by the new group are expected to bring savings of $600 million a year by 2021.

The agreement is due to be finalised by the end of the second quarter of this year after receiving approval from Dr Pepper’s shareholders and the relevant authorities.