D.E Master And Mondelez Int'l Get EU Approval To Create Global Coffee Business

(RTTNews) - D.E Master Blenders 1753 B.V. or DEMB and Mondelez International, Inc. (MDLZ) announced that they have received conditional approval from the European Commission to combine their respective coffee businesses and create the pure-play coffee company - JACOBS DOUWE EGBERTS or JDE.

The European Commission's approval follows JDE's commitment to divest the Carte Noire brand throughout the European Economic Area, the Merrild brand in Denmark and the Baltics, and licensing of the Senseo brand to a third party in Austria.

JDE will be the pure-play coffee company with annual revenues of more than 5 billion euros.

The JACOBS DOUWE EGBERTS leadership team will be comprised of executives from both D.E Master Blenders 1753 and Mondelez International.

On May 7, 2014, Mondelez International and D.E Master Blenders 1753 announced their intention to combine their respective coffee businesses to create the world's leading pure-play coffee company. In October of 2014, the European Commission was formally notified about the proposed transaction. Today, the European Commission approved the combination of the respective coffee businesses subject to the conditions listed on their website.

The transaction is anticipated to close in the course of 2015, subject to remaining closing conditions, at which point Mondelez International will receive cash of approximately 4 billion euros and a 49 percent equity interest in JACOBS DOUWE EGBERTS.

Acorn Holdings B.V. (AHBV), owner of D.E Master Blenders 1753, will hold a majority share in JDE and will have a majority of the seats on the board, which will be chaired by current DEMB Chairman, Bart Becht.

AHBV is owned by an investor group led by the JAB Holding Company (JAB) in partnership with BDT Capital, Quadrant Capital Advisors and Société Familiale d'Investissements. Mondelez International will have certain minority rights.