Key Moments
- Coca-Cola (NYSE:KO) has stopped the Costa Coffee sale process after private equity offers reportedly failed to match its price expectations.
- The auction, which ran for several months and involved multiple private equity firms, concluded in December with talks terminated.
- Costa, purchased for £3.9 billion in 2018, was marketed at about £2 billion as it faces pressure from soft consumer demand and heavy competition.
Sale Process Called Off After Disappointing Offers
Coca-Cola (NYSE:KO) has decided not to proceed with a sale of Costa Coffee after receiving bids from private equity suitors that did not align with its valuation, according to a Financial Times report citing people familiar with the situation.
The company brought an end to discussions with the remaining interested parties in December, closing an auction that had been under way for several months, the report said.
Coca-Cola has decided to halt the sale of its Costa Coffee chain as bids from private equity firms did not meet expectations. pic.twitter.com/bUEH1lCRVy
— PiQ Newswire (@PiQNewswire) January 14, 2026
Private Equity Interest and Valuation Gap
According to the report, investors involved in the later stages of the process included TDR Capital, the owner of Asda, and Bain Capital’s special situations fund. Earlier in the auction, Apollo, KKR (NYSE:KKR), and Centurium Capital had also taken part.
The FT reported that Coca-Cola had targeted a valuation of about £2 billion for Costa, which is roughly half of the £3.9 billion it paid to acquire the coffee chain from Whitbread in 2018. Discussions with TDR reportedly contemplated a structure in which Coca-Cola would have retained a minority equity interest.
| Item | Detail |
|---|---|
| Owner | Coca-Cola (NYSE:KO) |
| Reported target sale price | About £2 billion |
| Original acquisition price (2018) | £3.9 billion |
| Key bidders (later stages) | TDR Capital, Bain Capital’s special situations fund |
| Other participants (earlier stages) | Apollo, KKR (NYSE:KKR), Centurium Capital |
Leadership Change and Strategic Outlook
The move to end the sale process comes ahead of a leadership change at Coca-Cola. Chief operating officer Henrique Braun is scheduled to succeed James Quincey as chief executive in March. The FT cited one person as saying that a potential sale of Costa could still be reconsidered in the medium term, despite the current decision to halt the process.
Costa’s Operating Environment
Costa operates more than 2,700 outlets across the UK and Ireland, according to the report. The chain has been facing challenges from subdued consumer spending and strong competitive pressures in its markets.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
