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JAB will acquire Mondelez's shares in a 2.2 billion euro ($2.4 billion) deal

The shares of Dutch coffee maker, JDE Peet’s have jumped by 16% as JAB announces that it will increase its majority stake to 68%.

JAB will acquire Mondelez's shares in a 2.2 billion euro ($2.4 billion) deal.

According to the agreement, German conglomerate JAB will acquire Mondelez's 86 million shares.

JAB to Allocate 9% of JDE Peet’s Share Capital to JAB Consumer Partners

JAB plans to allocate 9% of JDE Peet’s share capital to limited partners of JAB Consumer Partners. This thereby, increases the free float percentage to 32%.

The shares of JDE Peet’s rose by 15.6% as of 08:40 GMT. The shares of the company fell by 22% since the beginning of the year.

This is due to the impact of how EU sanctions have hit the company’s business in Russia. It is also due to the lack of a CEO in the company.

"We are fully committed to remaining an anchor shareholder of the world’s leading pure-play coffee and tea company", JAB said in a statement.

JAB to Pay 25.10 Euros Per Share for Mondelez's 86 Million Shares

JAB said that the company will pay 25.10 Euros per share for Mondelez's 86 million shares or 17.6% stakes. JDE Peet’s includes companies Douwe Egberts and Kenco.

"The visibility on the new CEO and buy out of the Mondelez stake eliminates an overhang on the stock," analysts at JP Morgan said in a note.

JDE Peet’s Announced New CEO

JDE Peet’s has announced a new CEO, Rafael Oliveira. Rafael Oliveira is an executive at Kraft Heinz with over 10 years of experience. Rafael will be taking up the role from November 1.

Oliveira will take over the role of  CFO Scott Gray. Scott Gray handled the responsibilities after the resignation of interim CEO Luc Vandevelde in August.

The company cited that "unforeseen matters that required his immediate attention" were the reason for Vandevelde's resignation.

JDE Peet's is an American-Dutch company that deals in coffee, tea, and hot chocolate.

It has over 100 markets with a portfolio of over 50 brands including L’OR, Peet’s, Jacobs, Senseo, Tassimo, Douwe Egberts, Old Town, Super, Pickwick, and Moccona. The company has generated a total sales of EUR 8.2 billion in 2023.