Aug 24 (Reuters) - Keurig Dr Pepper ( KDP ) is close to

a roughly $18-billion deal to buy Dutch coffee company JDE

Peet's, the Wall Street Journal reported on Sunday,

citing people familiar with the matter.

The merged company plans to later separate their beverage

and coffee units, the report said.

Reuters could not immediately verify the report. Keurig Dr

Pepper ( KDP ) and JDE Peet's did not immediately respond to requests

for comment.

Keurig Dr Pepper ( KDP ), created in 2018 through the merger of

Keurig Green Mountain and Dr Pepper Snapple, owns brands

including Dr Pepper, Snapple, 7UP, and Green Mountain Coffee.

The company has a market valuation of about $48 billion,

while JDE Peet's, listed in Amsterdam, is valued at 12.76

billion euros ($14.93 billion), according to LSEG data.

Its shares are up nearly 10% this year on strong beverage

sales but the company has warned its coffee segment will stay

subdued for the rest of the year due to U.S. tariffs under

President Donald Trump and higher coffee prices.

JDE Peet's, which owns brands including Jacobs, L'Or,

Tassimo and Douwe Egberts, has also warned U.S. coffee prices

could rise if Trump's threatened tariffs extend to Brazilian

exports.

The company is majority-owned by Germany's JAB, which also

holds a significant minority stake in Keurig Dr Pepper ( KDP ),

according to LSEG data.

Separately, the Financial Times reported on Sunday citing a

source that JAB expects separating the companies after the

merger would unlock more value from the soft drinks group.

The deal could be announced as soon as Monday, FT said,

citing people familiar with the matter.

JAB did not respond to a request for comment.

($1 = 0.8545 euros)