Monday Market Update: Stocks Dip as Keurig Dr Pepper and Valneva Announce Acquisitions

US stocks were mixed on Monday with the Dow Jones index falling over 200 points. Keurig Dr Pepper shares dipped 7.8% to $32.38 after the company announced the acquisition of JDE Peet’s. Other big stocks recording losses include Valneva SE, DeFi Development Corp., Venu Holding Corporation, Polibeli Group Ltd, GigaCloud Technology Inc., Axogen, Inc., Ascentage Pharma Group Internat, Amber International Holding Limited, Next Technology Holding Inc., Kyivstar Group Ltd, and Iovance Biotherapeutics, Inc.

US stocks were mixed on Monday with the Dow Jones index falling over 200 points. Keurig Dr Pepper shares dipped 7.8% to $32.38 after the company announced the acquisition of JDE Peet’s. The all-cash deal, valued at $18.4 billion, is set to transform the global beverage market [1].

Keurig Dr Pepper, the company behind Dr Pepper and 7Up drinks and Keurig coffee products, will acquire JDE Peet’s, which includes brands like Douwe Egberts, Kenco, and Peet’s Coffee. The acquisition will result in the creation of two independent companies: Global Coffee Co., focused on coffee, and Beverage Co., focused on soft drinks and beverages [1][2][3][4].

The acquisition comes with a significant price tag, with Keurig Dr Pepper paying €31.85 ($37.26) per share in cash to JDE Peet’s shareholders, representing a total purchase price of €15.7 billion ($18.4 billion) [1]. This deal marks a strategic departure from Keurig Dr Pepper’s 2018 merger that combined coffee and soft drinks under one roof, which failed to deliver consistent performance across both segments [2].

Global Coffee Co. will have an estimated annual sales of around $16 billion, making it the world’s largest pure-play coffee company. Beverage Co. will target over $11 billion in North American beverage sales [2]. The two companies plan to realize more than $400 million in cost synergies within three years [4].

The transaction is expected to create two sharply focused businesses, allowing each to grow independently. Keurig Dr Pepper’s CEO, Tim Cofer, will head Beverage Co., while Sudhanshu Priyadarshi, the company’s chief financial officer, will lead Global Coffee Co. [2][4].

Investors reacted quickly to the news, with JDE Peet’s stock jumping nearly 18% and Keurig Dr Pepper’s shares sliding, reflecting the market’s mixed response to the deal [2].

References:
[1] https://www.cnn.com/2025/08/25/business/keurig-dr-pepper-buy-jde-peets-split-intl
[2] https://www.primetimer.com/news/keurig-dr-pepper-to-reshape-beverage-market-with-eighteen-billion-jde-peet-s-acquisition-and-split
[3] https://finance.yahoo.com/news/iovance-biotherapeutics-iova-receives-conditional-034527467.html
[4] https://www.adweek.com/commerce/keurig-dr-pepper-to-buy-jde-peets-in-18-billion-deal/