Keurig Dr Pepper and JDE Peet’s said the companies would operate independently with Tim Cofer, current CEO of Keurig, serving as CEO of the beverage company, and Sudhanshu Priya

The contemplated transaction would create the world's largest pure-play coffee company while enabling KDP to pursue its core beverage business independently.

Keurig Dr Pepper says it will buy Peet's Coffee owner JDE Peet's in an $18 billion acquisition, with plans to split into two companies afterwards.