London – Qahwa World
Coca-Cola is reportedly making a final attempt to keep negotiations alive over the potential sale of Costa Coffee, as discussions with its preferred buyer have slowed due to disagreements on valuation.
According to international media reports, talks between the US beverage group and London-based private equity firm TDR Capital have reached an impasse. TDR, the owner of UK supermarket chain Asda, was recently named the leading contender to acquire Costa Coffee. The proposed transaction would reportedly cover Costa’s UK and global operations, while excluding its approximately 300 stores in China.
Sources familiar with the matter indicate that Coca-Cola is seeking a valuation close to $2 billion for the 4,200-store coffee chain. This figure represents a significant reduction from the $4.9 billion the company paid when it acquired Costa Coffee in early 2019. A final decision on the future of the brand is expected before December 21, 2025.
In an effort to secure an agreement, Coca-Cola is said to be open to alternative deal structures, including the sale of a controlling stake rather than a complete exit.
The company began formally reviewing strategic options for Costa Coffee in August 2025. The move followed comments from outgoing Chief Executive James Quincey, who acknowledged to investors that the performance of the coffee business had fallen short of expectations and had not delivered the returns initially anticipated.
Several investment groups have previously expressed interest in Costa Coffee. These include US-based Bain Capital and China’s Centurium Capital, which owns Luckin Coffee. Other major private equity firms, including Apollo and KKR, are understood to have withdrawn from the process in recent months.
