Nestle Pays USD 7.2 Billion to Sell Starbucks Coffee

Swiss food chain Nestle will pay Starbucks USD 7.2 Billion in cash for rights to sell the product of the American coffeehouse chain around the world.

With this latest alliance Nestle will secure its position as the world's largest coffee manufacturer and will increase its earnings per share considerably starting in 2019, Reuters reports.

Nestle has an annual income of USD 2 billion which makes up approximately 9% of the total Starbucks revenue, and with the new transaction it will take over around 500 Starbucks employees.

Mark Schneider, the new Nestle CEO, recently marked the coffee sector as a key strategic area for investment of the company known for its instant coffee brand Nescafe.

Starbucks announced that the shareholders should in return get around USD 20 billion through acquisition of shares and dividends during the fiscal year 2020.

Nestlé S.A.

Starbucks SAD

Nestle

Starbucks

Nescafe

Mark Schneider

instant coffee