Keurig Dr Pepper Shares Slide After $18B JDE Peet’s Deal

Keurig Dr Pepper shares fell 11.5% Monday and another 5.6% Tuesday, according to Barron's. The stock slid after the company announced an $18 billion acquisition of JDE Peet’s, followed by a company split. Investors are concerned about the debt-heavy funding, a potential credit downgrade, and the 33% premium paid for JDE Peet’s. Analysts say the deal could deliver $400 million in synergies and $16 billion in annual coffee sales but warn it will take time and regulatory approvals to realize. The remaining beverage business, projected at $11 billion in sales, will focus on high-growth categories like energy drinks. JPMorgan and UBS analysts maintained bullish ratings with $39 to $40 price targets, calling the stock attractive after the selloff.