In a major move, Coca Cola is all set to enter the coffee and retail outlets industry with a £3.9 billion purchase of UK chain Costa. The biggest acquisition in the last eight years of the soda pioneer will put it directly in the middle of the competitive market. After Whitbread Plc announced its plans to spin off the business in April, Coca Cola went right in to claim on a business with 3,800 stores in 32 countries and a foothold in China.
Whitbread CEO Alison Brittaion highlighted the soft-drink company's desire to close the deal, and said the two sides signed just minutes before the announcement after Coke first approached the other party in June. “It's been a very fast transaction,” she said. Whitbread itself has cheered on the deal, as shares soared the most in almost two decades, even as Coke shares were muted. Coca Cola CEO James Quincey said the Costa transaction is a “serious and significant investment” in hot beverages.
