The Globe and Mail reports in its Tuesday edition that Keurig Dr Pepper is set to create a global coffee giant to rival market leader Nestle with an $18-billion (U.S.) takeover of JDE Peet's, Europe's largest acquisition in more than two years. A Reuters dispatch to The Globe reports that the deal, announced on Monday, offers a 20-per-cent premium to JDE Peet's closing market price on Friday. It proposes splitting the merged company's coffee operations and beverage businesses into two separate publicly U.S.-listed companies, as the Dutch company will be delisted from the Amsterdam stock exchange. The transaction aims to generate $400-million (U.S.) in annual cost savings amid a growing global trade war, helping the new entities compete against rising U.S. tariffs on coffee-producing nations and other rivals. ING analyst Maxime Stranart says: "The new coffee entity will be somewhat similar in size to the coffee business of Nestle. ... The two would each have a market share of around 20 per cent in the global CPG [consumer packaged goods] coffee market." The deal arises as global coffee prices hit record highs due to droughts in Brazil and Vietnam, and President Donald Trump's 50-per-cent duties on Brazilian bean imports.