US EditionCoca-Cola Ditches Costa Coffee Sale As Bids Falter: Report - Coca-Cola (NYSE:KO), PepsiCo (NASDAQ:PEP)
Coca-Cola ended the auction after bids failed to reach the $2.5 billion target amid Costa Coffee's rising losses and competition, with a CEO change set for March.
- On Wednesday, The Coca-Cola Company halted the planned sale of its Costa Coffee chain after private equity bids failed to meet the company's expectations, the Financial Times reported and Reuters could not immediately verify.
- Facing a valuation gap, Coca-Cola had sought about $2.5 billion after buying Costa Coffee for $5.1bn in 2018, while Costa's operating losses more than doubled to 13.5 million on 1.2 billion revenue in 2024.
- The auction run by Lazard drew bidders such as Apollo and KKR, with talks ending when Coca-Cola closed discussions with TDR Capital and Bain Capital's special situations fund.
- Company insiders say Coca-Cola could revive plans to sell Costa in the medium term as Henrique Braun is set to replace James Quincey in March, and the company did not immediately respond to requests for comment.
- Technical indicators show balanced strength even as value metrics remain weak; Benzinga Edge Rankings report Coca-Cola shares rose about 12.5% in 2025 while PepsiCo dropped 5.1%, though shares fell 0.22% at $71.08 on Tuesday.
15 Articles
15 Articles
Private equity companies did not submit bids equal to the amount required by Coca-Cola and the sales process was terminated.
Coca-Cola had taken over Costa Coffee in 2018 for 5.1 billion dollars. Now the beverage manufacturer wanted to sell the coffee house chain – but the bids were probably too low.
Coca-Cola Ditches Costa Coffee Sale As Bids Falter: Report - Coca-Cola (NYSE:KO), PepsiCo (NASDAQ:PEP)
Coca-Cola (NYSE:KO) has decided to halt the sale of its Costa Coffee chain after private equity bids did not meet the company’s expectations, according to a report published Wednesday. The soft drinks giant ended discussions with remaining bidders in December, including TDR Capital and Bain Capital's special situations fund, after a prolonged auction process, the Financial Times reported, citing sources familiar with the matter. Coca-Cola had ta…
Coca-Cola Ditches Plan To Sell Costa Coffee
Coca-Cola is reported to have scrapped plans to sell its Costa Coffee business after bids from private equity suitors fell short of its expectations. According to sources quoted by the Financial Times, the soft drinks giant ended talks with remaining (more…) The post Coca-Cola Ditches Plan To Sell Costa Coffee appeared first on KamCity.
Coverage Details
Bias Distribution
- 80% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
