The business will house coffee brands such as Gevalia and Jacobs from Mondelez and Senseo and Douwe Egberts from D.E. Master Blenders, formerly the Sara Lee coffee business.
The new company will be called Jacobs Douwe Egberts and be headquartered in the Netherlands. The combined company will have annual revenue of more than $7 billion.
The deal includes Mondelez's coffee portfolio outside of France. D.E. Master Blenders owner Acorn Holdings has made a separate offer for the coffee business in France.
Mondelez will receive about $5 billion when the transaction closes and have a 49 percent equity stake in the new company. Acorn will have a majority stake in the combined company and hold a majority of its board seats.
