Coca-Cola’s proposed sale of Costa Coffee is at risk of falling through according to a report from the Financial Times, which says “last-ditch” talks with private equity firm TDR Capital have been held in an attempt to save the transaction.
TDR Capital, which owns United Kingdom supermarket chain Asda, was selected as Coca-Cola’s preferred bidder, however talks have reportedly hit a significant stumbling block due to the price of the deal.
Coca-Cola paid £3.9 billion (US$5.21 billion) to purchase Costa Coffee from Whitbread in 2017, however Costa reported losses of £13.8 million (US$18.45 million) on revenues of £1.2 billion (US$1.6 billion) in 2023, according to recently available financial reports.
Costa Coffee is the United Kingdom’s largest coffee chain, and one of the largest in the world. It was founded in London by brothers Sergio and Bruno Costa in 1971 and currently operates in more than 30 countries.
It recently announced an extension of its agreement with Emirates Leisure Retail in the Middle East.
