Dr Pepper Snapple merges with Keurig Green Mountain

US soft drink maker Dr Pepper Snapple is to merge with coffee company Keurig Green Mountain to form Keurig Dr Pepper.

The new beverage giant will bring together well-known brands such as Dr Pepper, Orangina, Schweppes and Sunkist with Green Mountain Coffee Roasters.

Keurig Dr Pepper will have a combined annual revenue of $11bn (£7.8bn).

Under the terms of the agreement, Dr Pepper Snapple shareholders will retain 13% of the combined company.

Dr Pepper Snapple shareholders will also receive $103.75 per share in a special cash dividend.

The firms said that the merger would enable Keurig Dr Pepper to have "unrivalled distribution capability to reach virtually every point-of-sale in North America".

Dr Pepper Snapple was spun off from Cadbury Schweppes in 2008 to become a standalone company.

The firm markets over 50 brands of carbonated soft drinks, juices, teas, mixers, waters and other premium beverages.

Keurig Green Mountain is a US-based coffee company owned by private equity firm JAB.

It makes over 400 types of coffee and other drinks that can be made in its brewing machines.