NESTLE BUYS RIGHTS TO STARBUCKS
Nestle announced on Monday that it will pay $7.15 billion in cash for the rights to market Starbucks products around the world, outside of the company's coffee shops. Nestle is focusing on coffee as a main growth area and has already made some acquisitions in the sector, including buying a stake in California's Blue Bottle Coffee last September.
The agreement gives Nestle, which owns the Nescafe and Nespresso brands, a strong platform for continued growth in North America. The deal does not include any of Starbucks' coffee shops and cafes.
Around 500 Starbucks staff will join Nestle, the company said, adding that both companies would collaborate on "innovation and go-to-market strategies".