Coca-Cola puts Costa Coffee sale on hold after low bids
Coca-Cola has hit pause on selling its Costa Coffee chain after potential buyers didn't meet the £2 billion asking price.
Talks with firms like TDR Capital and Bain Capital wrapped up in December without a deal, as offers fell short of what Coca-Cola wanted.
The company had considered selling for much less than the £3.9 billion it paid back in 2018, mainly because of rising costs and tough competition.
What's next for Costa Coffee?
Costa's been facing financial struggles, reporting £1.2 billion in revenue but still seeing operating losses grow to £13.5 million last year.
Outgoing CEO James Quincey admitted Costa hasn't lived up to Coca-Cola's investment hopes, but says a future sale is still possible.
For now, Costa keeps running its 2,700 stores across the UK and Ireland—though its future is still a bit uncertain.