Coca-Cola holds “last-chance talks” on Costa Coffee sale

Coca-Cola is making a final attempt to reach an agreement with investor TDR on the sale of coffee chain Costa Coffee. Negotiations have stalled over the price, but that would be bad for both parties.

Barely worth half

Coca-Cola acquired the British chain in 2018, for 4.4 billion euros. The soft drinks giant attempted to diversify its portfolio, but that has not turned out to be a successful move. Costa Coffee never lived up to the high expectations and, according to analysts, is now worth barely half of that acquisition price.

According to the Financial Times, it is not Wagamama owner Apollo GM, but British investor TDR that is now the preferred takeover candidate. TDR is the owner of the EG Group petrol station chain and Costa Coffee would be an interesting addition to its portfolio.

Difficult to digest

However, it is proving more difficult than expected to agree on a takeover price and terms that are acceptable to both parties. On the one hand, Coca-Cola wants to make just under 2.5 billion euros from the sale, but at the same time retain a minority stake. TDR, however, is reportedly not keen on this.

Costa Coffee has more than 4,000 locations worldwide, but growth in Belgium has been slower. Almost two years after the opening of the first Belgian location, in the Liège-Guillemins train station, there is still only that one location – despite the fact that Costa Coffee is actually led by a Belgian, Philippe Schaillee.