Starbucks has filed an application with the U.S. Securities and Exchange Commission that would create a combined company with the world’s largest coffee chain, Amazon.
The combined company would be called Amazon Prime, and it would compete against the likes of Starbucks and Walgreens.
Starbucks is one of the nation’s largest companies and a huge consumer of coffee.
It has a market value of $52 billion and employs roughly 1 million people in the U to 1.5 million in the United States.
The company has been in business for more than 100 years.
The filing is expected to come before the SEC this week.
The merger would give Starbucks a larger presence in the nation and give Amazon a larger foothold in the grocery and apparel sectors.
Starbucks will be owned by Starbucks Corp., and Amazon will be in charge of the consumer products businesses.
The application filed with the SEC calls for a $12 billion purchase price for the new company, but there are no details on how much Amazon will pay.
Starbucks has been trying to sell its coffee business for several years.
Its stock is down about 30% this year.
Starbucks said the company is still reviewing the offer and that it plans to meet with regulators.
The companies would merge into an umbrella company called Amazon Web Services Inc., or AWS.
AWS is one or more of the Amazon Web services companies that are listed on Nasdaq.
The new company would join the Amazon services group and Amazon Web.com, which is the largest e-commerce and online retailer in the world.
Amazon also has a presence in retail, with stores in New York, Boston, Los Angeles and Seattle.
It recently launched its own online store.
Starbucks had been trying for a decade to sell off its coffee operations, but the effort has not paid off.
The U.K. company said in a regulatory filing in February that it was “considering a combination of the acquisition of Starbucks Coffee, and the sale of Starbucks.”
Starbucks said last week it was exploring a sale.
The proposed transaction could benefit consumers.
Amazon’s stock has been on a tear this year, rising nearly 12% over the past two weeks to close at $142.85 a share.
Amazon has been expanding its digital offerings, including offering online video to customers in the Philippines.
Amazon said last month it would begin selling video games in Australia, Singapore and New Zealand.
In May, Amazon opened its first U.N. headquarters, a new campus in Seattle, Washington.
The building is set to become a hub for U.W. business.