A match made in caffeine heaven. Nestle's $7.1 billion alliance with Starbucks has now been finalized,allowing it to exclusively sell the coffee maker's packaged coffees and teas around the world.
Nestle expects the partnership to add to its earnings by 2019 and to boost the brand in North America,where it ranks fifth with less than 5 percent of the coffee market.
Starbucks says it will use the cash payment from Nestle,to increase planned stock buybacks over the next few years to $20 billion.
The agreement also includes Starbucks-branded capsules for Nestle's Nespresso and Dolce Gusto single-serve brewers.
It will give Starbucks greater presence in China, Nestle's second biggest market and strengthen the Swiss firm's position as the world's biggest coffee company.
As part of the deal, 500 Starbucks employees will move to Nestle.
Starbucks and Nestle have wrapped up a $7.15 billion deal for the Swiss company to market the US coffee maker’s packaged coffees and teas around the world.
Video source: VCG