By Mateusz Rabiega (Reuters) -U.S.-listed Keurig Dr Pepper has agreed to buy Dutch company JDE Peet's for 15.7 billion euros ($18.4 billion) in cash, aiming to establish a global coffee champion in the face of growing trade challenges.

Keurig Dr Pepper said Monday it is buying the owner of Peet's Coffee for $18 billion (15.7 billion euro). Then it will break itself in two, with one company selling coffee and the other selling cold beverages like Snapple, Dr Pepper, 7UP and energy drinks.

Keurig Dr Pepper Inc. announced an $18 billion all-cash deal to acquire Dutch-based JDE Peet’s NV on Monday, a major bet on coffee for the U.S. drinks giant, whose stock has been struggling for years.