Coca-Cola to buy Costa coffee chain for £3.9bn

Whitbread shares jumped 18 per cent after it unveiled a deal to sell its Costa coffee chain to Coca-Cola for £3.9bn including debt. Chief executive Alison Brittain said the deal represented a "Substantial premium" to what would have been achieved by demerging Costa. James Quincey, Coca-Cola president and chief executive said that Costa would give the company, "New capabilities and expertise in coffee, and our system can create opportunities to grow the Costa brand worldwide". "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." Ms Brittain said the deal was "Great news for shareholders as it recognises the strategic value we have developed in the Costa brand and its international growth potential and accelerates the realisation of value for shareholders in cash".

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