The Coca-Cola Company scrapped its plan to sell the Costa Coffee chain. Coke halted the months-long auction after offers from potential private equity buyers failed to meet the company's valuation expectations.
Sources familiar with the matter confirmed that remaining bidders were informed in December the sale would not proceed. Initial reports do not yet include details on market or stock price reactions.
Coca-Cola acquired the British coffee chain in 2019 to build a global coffee business and diversify its portfolio away from sugary drinks. This strategy reversal indicates the company will likely hold and develop the asset for the foreseeable future.