Mondelez International and DE Master Blenders 1753 plan to combine their coffee businesses to create a company with annual revenue of more than $7bn.

Mondelez will receive about $5bn and a 49% stake in the new company, Jacobs Douwe Egberts.

US-based Mondelez's coffee portfolio outside of France will be combined with those of Netherlands-based DE Master Blenders.

Mondelez's coffee brands include Kenco and Tassimo, as well as Carte Noire.

Outside of its coffee business, Modelez is best known for its chocolate brands, which include Cadbury's and Milka.

DE Master Blenders, meanwhile, produces the Douwe Egberts and Senso coffee brands.

Acorn Holdings, the owner of DE Master Blenders and majority owner of the new company, has also made a binding offer for Mondelez's coffee business in France, the companies said.