Summary
Mondelez International, Inc. (MDLZ) filed an 8-K on May 5, 2015, to disclose a significant development in its coffee business. The company, along with D.E Master Blenders 1753 B.V., received conditional approval from the European Commission to combine their respective coffee businesses into a new entity named Jacobs Douwe Egberts. This conditional approval is a crucial step towards finalizing the previously announced strategic transaction, which was initially revealed on May 7, 2014. Investors should view this as a positive development, indicating progress in the company's strategy to divest or combine non-core assets and focus on its snacks and confectionery portfolio. The formation of Jacobs Douwe Egberts is expected to create a leading global coffee player.
Key Highlights
- 1Mondelez International and D.E Master Blenders 1753 B.V. received conditional approval from the European Commission for their coffee business combination.
- 2The new combined coffee company will be named Jacobs Douwe Egberts.
- 3This approval is a key milestone for the previously announced transaction from May 7, 2014.
- 4The filing is a Regulation FD Disclosure (Item 7.01).
- 5The press release announcing this event is attached as Exhibit 99.1.