Coca Cola in urgent talks to rescue Costa Coffee sale as deal hangs in the balance

Coca Cola is scrambling to save the proposed sale of its Costa Coffee business, entering last ditch talks with private equity firm TDR Capital after price disagreements stalled the deal. TDR, owner of UK supermarket chain Asda and Coca Cola’s preferred bidder, has been negotiating with the company and its adviser Lazard, but differences over valuation remain unresolved. The deal under discussion would allow Coca Cola to retain a minority stake in Costa, though the exact share could be adjusted to reach an agreement. Acquired from Whitbread Plc in 2018 for $5.1 billion (£3.9 billion), Costa has struggled with rising costs and fierce competition, prompting CocaCola to seek roughly £2 billion — a steep discount from its original purchase price. A collapse of the sale would be a major blow to Coca Cola’s push into hot beverages, where Costa was meant to act as a growth engine alongside its soft drink portfolio. Other private equity firms, including Bain Capital and Centurium Capital, had expressed interest, but heavyweights such as Apollo and KKR have already exited the race. Sources say both sides are under pressure to finalize terms quickly, with a decision expected next week, though neither Coca Cola nor TDR has commented.