Mondelez, D.E. Master Blenders to combine coffee businesses

Wed May 7, 2014 7:33am EDT

May 7 (Reuters) - Mondelez International Inc and D.E Master Blenders 1753 BV said they would combine their coffee businesses to create a company with annual revenue of more than $7 billion.

Mondelez will receive about $5 billion and a 49 percent stake in the new company, Jacobs Douwe Egberts.

U.S.-based Mondelez's coffee portfolio outside of France will be combined with those of Netherlands-based D.E Master Blenders.

Acorn Holdings BV, the owner of D.E Master Blenders and majority owner of the new company, has also made a binding offer for Mondelez's coffee business in France, the companies said.

(Reporting by Maria Ajit Thomas in Bangalore; Editing by Sriraj Kalluvila)