Coca-Cola’s proposed sale of Costa Coffee is at risk of falling apart, according to a report by the Financial Times. The US soft drinks giant is holding last-ditch talks this weekend with private equity firm TDR Capital to try to rescue the deal. Sources familiar with the matter said negotiations have stalled mainly over valuation.
Earlier this week, Coca-Cola selected TDR as its preferred bidder. However, disagreements over price have complicated the process. Under the proposed structure, Coca-Cola would retain a minority stake in the British coffee chain.
Neither Coca-Cola nor TDR Capital commented on the report. Reuters also said it could not independently verify the information.
In August, sources told Reuters that Coca-Cola had appointed Lazard to review strategic options for Costa Coffee, including a potential sale. Lazard has not commented publicly on the matter.
Coca-Cola is holding last-ditch talks with TDR Capital this weekend as its proposed sale of Costa Coffee faces the risk of collapse, the Financial Times reported, citing people with knowledge of the matter. https://t.co/aiNdgLkeqW
— Bloomberg (@business) December 13, 2025Coca-Cola acquired Costa in 2018 from Whitbread Plc for an enterprise value of $5.1 billion, marking one of the company’s largest acquisitions. The deal formed part of Coca-Cola’s strategy to diversify beyond sugary soft drinks and expand into hot beverages.
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Separate reporting by Sky News said Coca-Cola has held preliminary discussions with a small group of potential buyers, including several private equity firms. According to the report, indicative bids were expected in early autumn. However, it added that Coca-Cola could still decide against a sale depending on market conditions and valuations.
Coca-Cola $KO holds last-ditch talks in bid to salvage Costa Coffee sale via @FT https://t.co/RrhNGvAtaA
— Yahoo Finance (@YahooFinance) December 13, 2025Costa Coffee operates in 50 countries and remains one of the world’s largest coffee chains. The brand operates more than 2,700 stores across the UK and Ireland, as well as 1,300 additional outlets worldwide.
Coca-Cola originally acquired Costa to strengthen its position in the global coffee market and compete more directly with rivals such as Starbucks and Nestlé. Analysts say any decision to sell would signal a major strategic shift in Coca-Cola’s long-term beverage portfolio.
