Disagreements Over Pricing Threaten Coca-Cola's Planned Sale Of Costa Coffee - Coca-Cola (NYSE:KO)

Core Insights - Coca-Cola and TDR Capital are in urgent discussions regarding the potential disruption of the sale of Costa Coffee due to pricing disagreements [1] - Coca-Cola had aimed for proceeds of approximately $2.5 billion from the sale, having acquired Costa for around $5 billion in 2018 [2] - Costa Coffee reported an annual loss of £13.8 million on revenues of £1.2 billion in 2023, indicating financial struggles amid stiff competition [2] Company and Industry Summary - TDR Capital, co-owner of EG Group, is interested in acquiring Costa's UK and international business, excluding operations in China [3] - Other potential bidders included Bain Capital and Centurium Capital, while Apollo and KKR have withdrawn from the bidding process [3] - The potential collapse of the sale could result in Coca-Cola missing an opportunity to recover a significant portion of its investment in Costa, while Costa may continue to face challenges in a competitive market without the expected capital infusion [4]