The Swiss consumer goods giant said 500 Starbucks employees would transfer over to its business but they would continue to be located in Seattle, the group's headquarters for the last 47 years.
The Nescafe and Nespresso owner would own the rights to market Starbucks' coffee, which it says generates $2 billion in annual sales, the BBC reported.
Nestle chief executive Mark Schneider, who in 2016 became the first outsider to run Nestle in almost 100 years and who is attempting to boost the company's profit through expansion, described it as a "significant step".
The company last sold its US sweets and chocolate business, including brands such as Crunch and Butterfinger, to Ferrero Group for 2.7 billion Swiss francs.
Schneider described the "global coffee alliance" with Starbucks as "a great day for coffee lovers around the world".
(This story has not been edited by Social News XYZ staff and is auto-generated from a syndicated feed.)
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