Philips brews up deal with Saeco

Senseo is one of a number of machines which uses 'coffee pods'

Philips, the electronics firm behind the Senseo brand of coffee makers has agreed to buy the espresso machine firm, Saeco.

The deal will bring together two of Europe's biggest names in the automatic coffee machine world.

Saeco, which also makes machines under its Gaggia brand, has 30% of the European market.

Philips said the deal was reliant on an agreement with Saeco's banks over Saeco's outstanding debt.