Germany-based Joh A Benckiser, which owns Caribou Coffee and Peet's Coffee & Tea, has indicated that it is planning to acquire D. E Master Blenders 1753 in a deal valued at $9.8 billion.

The D. E Master Blenders 1753 was separated from Peoria-based Sara Lee Corp, which is now named Hillshire Brands, in the previous year. Dutch owner of Douwe Egberts coffee and Pickwick tea, D. E Master Blenders have said that it has approved a 12.50 euros per share cash acquisition deal from a group of investors led by Germany-based Joh A Benckiser.

The offer with 12.50 euros per share cash is lower than the company's initial bid valuing Blenders' shares at 12.75 euros per share. However, the offer still represents a 36 per cent premium to D. E. Master Blenders' average closing share price at the time of the initial bid in March. The merger will create a major global hot drinks company that will be able to compete better with Nestle and Mondelez International.

Nestle recorded coffee sales of $17.12 billion in the previous year, ahead of Mondelez International with $8.32 billion, according to the data from Euromonitor International. The D. E Master Blenders ranked third in the coffee market with sales of 2.66 billion euros.