Coca-Cola's Costa Coffee Sale in Jeopardy Amid Price Negotiations

Coca-Cola's sale of Costa Coffee faces potential collapse as discussions with TDR Capital hit pricing issues. Coca-Cola, maintaining a minority share, is in last-minute negotiations to salvage the deal. Originally acquired from Whitbread Plc in 2018 for $5.1 billion, the deal's future remains uncertain.

Coca-Cola's proposed sale of Costa Coffee is facing hurdles, with the deal at risk of falling apart due to disagreements over pricing. This weekend, Coca-Cola is engaged in last-ditch talks with private equity firm TDR Capital in an effort to rescue the transaction, sources told the Financial Times.

Selected as the preferred bidder earlier this week, TDR Capital's negotiations with Coca-Cola have hit a snag over the price, complicating the terms of the deal which involves Coca-Cola retaining a minority interest in Costa Coffee, the report indicates.

Neither Coca-Cola nor TDR Capital commented on the matter, while Lazard, the investment bank advising Coca-Cola, also remained silent. The situation comes after Coca-Cola acquired Costa Coffee from Whitbread Plc in 2018, marking a significant investment at the time.

(With inputs from agencies.)