(Reuters) -Keurig Dr Pepper on Monday announced it would buy Dutch company JDE Peet's for 15.7 billion euros ($18.4 billion) in cash, in a bid to create a global coffee heavyweight.

Here is what is known about the transaction:

THE DEAL'S STRUCTURE:

- In a first step, KDP will buy JDE Peet's for 15.7 billion euros, a deal that is expected to close in the first half of 2026.

- After the purchase, KDP will break itself up into two U.S. listed companies, one focused on refreshment beverages and one on coffee - for now dubbed Beverage Co and Global Coffee Co, respectively.

- The break-up of the combined entity will take place via a spin-off of Global Coffee Co to KDP's shareholders by the end of 2026.

- The transaction will result in cost savings and value creation of $400 million over three years.

- JAB Holding, which owns 4.4% in KDP as well as around 68% in JDE Peet's via its Acorn division, will hold nearly 5% in both entities following the spin-off, it said.

WHAT DO WE KNOW ABOUT BEVERAGE CO?

- More than $11 billion in annual net sales, 88% of which in the United States.

- $3.3 billion in adjusted earnings before interest, tax, depreciation and amortisation.

- Key brands: Dr Pepper, Canada Dry, 7UP and A&W.

- To be led by KDP's current CEO Tim Cofer.

- To be headquartered in Frisco, Texas.

WHAT DO WE KNOW ABOUT GLOBAL COFFEE CO?

- About $16 billion in combined annual net sales, of which 40% in North America and Europe, respectively.

- $3.1 billion in adjusted earnings before interest, tax, depreciation and amortisation.

- According to KDP it will be "the world's largest pure-play coffee company".

- Key brands: Keurig, Jacobs, L'OR and Peet's.

- To be led by KDP's current CFO Sudhanshu Priyadarshi.

- Global headquarters in Burlington, Massachusetts; international headquarters in Amsterdam, the Netherlands.

(Compiled by Christoph Steitz, Editing by Louise Heavens)