Coca-Cola holds last-ditch talks in bid to salvage Costa Coffee sale
- By Reuters -
- Dec 14, 2025
The Proposed sale of Costa Coffee by U.S. soft drinks company Coca-Cola is at risk of collapsing, with the company holding last-ditch talks this weekend with private equity firm TDR Capital in an effort to salvage the deal, the Financial Times reported on Saturday, citing people familiar with the matter.
TDR was selected as Coca-Cola’s preferred bidder earlier this week, but talks have stumbled over the price, the report said, adding that the deal includes the soft drinks giant retaining a minority stake in the British coffee chain.
Reuters could not immediately verify the report. TDR declined to comment. Coca-Cola did not immediately respond to a request for comment.
In August, Company said to be working with investment bank Lazard to review options, including a potential sale, of Coffee, a source familiar with the matter told Reuters. Lazard also did not respond to a request for comment.
In 2018, Britain’s Whitbread Plc sold Costa to Coca-Cola for an enterprise value of $5.1 billion.
Coca-Cola exploring sale of Costa Coffee: Report
U.S. soft drinks company is working with investment bank Lazard to review options, including a potential sale, of British coffee chain Costa, which it acquired in 2018 for over $5 billion, Sky News reported on Saturday.
Reuters could not immediately verify the report. Coca-Cola, Costa, and Lazard did not immediately respond to requests for comment.
Atlanta-headquartered Coca-Cola has held initial talks with a small number of potential bidders, including private equity firms, Sky News reported, citing unidentified sources.
The report said indicative offers are expected in early autumn, while noting that Company may ultimately choose not to proceed with a sale.
Costa Coffee operates in 50 countries, with more than 2,700 coffee shops across the UK and Ireland and over 1,300 more outlets globally, according to its website.
Coca-Cola acquired the chain more than six years ago to strengthen its push into healthier beverages and compete with Starbucks (SBUX.O) and Nestle (NESN.S), in the global coffee market.