Keurig Dr Pepper Plummets 11.48 as $1.36 Billion Surge Pushes Stock to 38th in Trading Volume Amid $18.4 Billion JDE Peet’s Acquisition

On August 25, 2025, Keurig Dr Pepper (KDP) fell 11.48% despite a surge in trading volume to $1.36 billion, ranking 38th in the market. The stock’s sharp decline followed the announcement of a $18.4 billion cash acquisition of JDE Peet’s, a Dutch coffee giant, to create a global coffee leader. The deal, valued at €31.85 per share, includes a 33% premium to JDE Peet’s 90-day average stock price and aims to split KDP into two independent U.S.-listed entities. One will focus on North American refreshments, while the other will become the world’s largest pure-play coffee company, combining Keurig’s single-serve dominance with JDE Peet’s global coffee portfolio.

The strategic move is expected to generate $400 million in cost synergies over three years and position both entities for tailored growth. However, the acquisition raises concerns over debt levels, with S&P Global placing KDP on “CreditWatch with negative implications” due to the complex two-step transaction. Executives Tim Cofer and Sudhanshu Priyadarshi will lead the new companies, with headquarters in Burlington, Massachusetts, Amsterdam, and Frisco, Texas. The deal, pending regulatory approvals, is projected to close by mid-2026, followed by a tax-free spin-off.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day from 2022 to now delivered moderate returns. The CAGR was 6.98%, with a maximum drawdown of 15.46% during the backtest period. The strategy demonstrated steady growth over time, making it a robust choice for investors seeking consistent returns. However, the significant drawdown in mid-2023 highlights the importance of risk management in high-volume trading strategies.