Nestle and Starbucks have confirmed their NZD 10.6 billion deal, that will see Nestle gain the rights to market Starbucks packaged goods into retailers. The deal, which was announced in May, was officially closed this week as the coffee powerhouse and Swiss food giant came to an agreement.

The partnership will mean that Nestle will be able to increase its position in the premium retail market. The deal will mean that Nestle will strengthen its coffee portfolio to include Starbucks packaged instant coffee, roast and ground beans, whole coffee beans, and coffee pods.

Nestle CEO, Mark Schneider said that the “partnership demonstrates our growth agenda in action, giving Nestle an unparalleled position in the coffee business with a full suite of brands.”

“Bringing together the world’s leading coffee retailer, the world’s largest food and beverage company, and the world’s largest and fast-growing installed base at home and single-serve coffee machines, helps us amplify the Starbucks brand around the world while delivering long-term value creation for our shareholders,” added Starbucks CEO and president Kevin Johnson.

500 Starbucks employees from the US and Europe will join the Nestle offices across the globe. The acquisition is the third largest for the Swiss food brand who currently hold around three percent of the US coffee market.