Coca-Cola on Friday said it had agreed to buy the global coffee chain Costa from its owner Whitbread for £3.9 billion ($5.1 billion).
According to Whitbread’s Chief Executive Alison Brittain, the board of the company had unanimously approved the deal as being in the best interests of its shareholders since payoff from the deal would allow the company to focus on expanding its Premier Inn business in the UK and Germany, besides reducing the firm’s debt and making a contribution to its pension fund.
The deal is being termed as a ‘win-win’ for both the parties since Coca-Cola gets to add the coffee product in its range of products. “You could see Costa absolutely everywhere, in vending machines, hotels, restaurants, pubs, cafes – in all the places you see Coke today,” she added.
“Hot beverages is one of the few remaining segments of the total beverage landscape where Coca-Cola does not have a global brand. Costa gives us access to this market through a strong coffee platform,” Coca-Cola chief executive James Quincey said in a joint statement.
The deal is subject to the agreement of Whitbread's shareholders and various other approvals, including from anti-trust bodies, and is expected to be completed in the first half of the next year.
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