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8/31/2018, 8:13 AM (Source: TeleTrader)
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Coca-Cola to acquire Costa Coffee for $5.1B

Coca-Cola announced on Friday it reached a deal to buy Costa Limited from Whitbread PLC in a deal valued at £3.9 billion ($5.1 billion). The acquisition is subject to approval from Whitbread shareholders, as well as regulators in the European Union and China and the transaction is expected to be completed in the first half of 2019.

"Costa gives Coca-Cola new capabilities and expertise in coffee, and our system can create opportunities to grow the Costa brand worldwide," Coca-Cola CEO James Quincey stated. Coca-Cola noted that the purchase of Costa Coffee will give the company a "strong coffee platform across parts of Europe, Asia Pacific, the Middle East and Africa, with the opportunity for additional expansion."

Costa was founded in London in 1971 and is the second largest coffeehouse chain in the world with just under 4,000 retail outlets worldwide.

Breaking the News / NP