Keurig Dr Pepper to acquire JDE Peet’s

American beverage conglomerate Keurig Dr Pepper is close to striking an $18 billion deal to acquire Dutch coffee company JDE Peet’s, according to the Wall Street Journal.

The companies plan to merge and later separate their beverage and coffee units.

JDE Peet’s, known for brands like L’Or, Tassimo, and Douwe Egberts, holds a market valuation of $15 billion, while Keurig Dr Pepper is valued at nearly $50 billion, LSEG data shows.

JDE Peet’s recently raised its annual forecasts after reporting $831 million in adjusted operating earnings, supported by strong sales despite high coffee prices.

Last year, Keurig Dr Pepper expanded its refreshment portfolio by purchasing a 60% stake in energy-drink maker Ghost for $990 million.