Stock Market Update

[BRIEFING.COM] The Nasdaq Composite (+0.2%) now holds a gain for the day, while the S&P 500 (-0.1%) and DJIA (-0.4%) hold modest losses.

Losses are broad-based but relatively modest, as nine S&P 500 sectors trade in negative territory, though only the consumer staples sector (-1.1%) holds a loss wider than 1.0%.

Within the sector, Keurig Dr Pepper (KDP 32.45, -2.68, -7.64%) trades lower today after the company announced plans to acquire Amsterdam-based JDE Peet's for €31.85 per share in cash, a 20% premium to Friday's close, for a total equity value of €15.7 billion. The deal pairs KDP's Keurig single-serve coffee platform with JDE Peet's portfolio of beloved coffee brands. KDP forecasts $400 million in cost synergies and that the deal will be immediately EPS accretive.

After the acquisition closes, KDP plans to separate into two independent, yet to be named, US-listed publicly traded companies. This will create a growth-focused North America refreshment beverage company ("Beverage Co.") and the world's #1 pure-play coffee company ("Global Coffee Co.").

Each business will have a distinct growth model and specific capital allocation priorities. CEO Tim Cofer will be CEO of "Beverage Co." and CFO Sudhanshu Priyadarshi to be CEO of "Global Coffee Co." upon separation.