Coca-Cola in talks about potential cut-price £2bn sale of Costa Coffee

Key Takeaways:

• Coca-Cola is considering selling Costa Coffee.
• The potential deal could be worth around £2bn at a reduced price.
• Costa Coffee has over 2,000 UK outlets, making it Britain’s biggest coffee chain.
• Bankers are reviewing Costa Coffee’s future under Coca-Cola’s ownership.
• Talks with buyers are ongoing, and the sale is not yet final.

Introduction

Coca-Cola, the American soft drinks giant, is in discussions with potential buyers to off-load Costa Coffee in a deal that could be valued at a cut-price £2bn. The company has owned Costa Coffee since its previous acquisition but is now said to be weighing a new direction for the chain.

The Potential Sale Talks

Reports indicate that Coca-Cola is collaborating with bankers to examine Costa’s market position and engage with interested parties. Although a figure of £2bn has been floated, there are suggestions that the actual sale price might be lower if Coca-Cola proceeds with the sale.

Costa’s UK Presence

Costa Coffee stands as Britain’s biggest coffee chain, boasting more than 2,000 outlets across the UK. Its prominence in the local market has made it a recognizable staple on high streets nationwide, attracting customers looking for quick coffee fixes and casual café experiences.

Coca-Cola’s Review Process

According to sources familiar with the situation, Coca-Cola aims to thoroughly assess Costa’s current and future potential. This-review process, aided by financial advisers, is a key step that will determine the coffee chain’s fate in the hands of its American owner.

Prospect of a New Ownership

If the talks progress and a sale is finalized, Costa Coffee could change hands once again. While no deals have been confirmed, buyer interest signals that the chain’s large UK footprint and brand strength may appeal to private equity firms or other industry players.

Conclusion

For now, Costa Coffee’s fate hangs in the balance. Coca-Cola’s ongoing discussions with prospective buyers indicate that a final decision is yet to be made. As Britain’s biggest coffee chain, the ultimate outcome could have a notable impact on the UK coffee market in the near future.