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The Coca-Cola Co has confirmed a final price of US$4.9bn for Costa Coffee as it completes the purchase of the UK-based coffee house chain it agreed last year.
Coca-Cola's new acquisition Costa Coffee has branches in Europe and Asia
The soft drinks giant said today it finalised the Costa transaction with previous owner Whitbread after approval from regulatory authorities in the European Union and China. The price is slightly lower than the initially stated purchase price of US$5.1bn because of currency fluctuations, a Coca-Cola spokesperson told just-drinks. The price in British pounds remains GBP3.9bn.
Coca-Cola first announced the deal at the end of August. The company said the takeover would give it access to Costa Coffee's retail channel, which covers 30 countries including China, the UK and the Philippines. It also said it would strengthen its hand in hot beverages and the on-trend coffee category.
"We see great opportunities for value creation through the combination of Costa's capabilities and Coca-Cola's marketing expertise and global reach," Coca-Cola CEO James Quincey said today.
Why is The Coca-Cola Co buying Costa? - Comment
Sectors: Mergers & acquisitions, Soft drinks, Wine
Companies: The Coca-Cola Company
