Coca Cola buys Costa Coffee for £3.9 billion

Costa Coffee

Costa doesn't now have a presence in North or South America, but Quincey indicated that one potential early expansion route would be to use Costa's vending operation and grow the company's ready-to-drink products. "It has been a very fast deal".

Costa, which is now owned by Whitbread, is being sold for £3.9 billion ($5.1 billion).

Whitbread had meant to spin off the chain as a separate firm, but said a straight sale was more profitable. It has invested heavily in Costa's expansion overseas recently, but had been looking to siphon off the business to generate funds for the expansion and for its other business, the budget hotel chain Premier Inn.

Activist investor Elliott Advisors became Whitbread's largest shareholder in April and called for a demerger on the grounds it could potentially value the separated firms at a combined £10bn as opposed to the current £7.7bn within the Whitbread stable. Whithead Plc said in a media release that it had judged the sale to be "in the best interests of shareholders".

Buying a popular coffee chain is different. The spinoff would have taken as long as two years, the company had said.

"Brands are interested in securing the means of distribution", he said. "Costa gives us access to this market with a strong coffee platform" he added.

She kept pushing for a higher price even after entering exclusive talks with the soft drinks giant and wouldn't surrender to a low-ball bid, a source close to the company said.

More news: North Korea to Hold International Blockchain Conference in October, Report Claims

Shares in Whitbread Plc have surged nearly 20 percent on news of the deal on Friday, adding more than £1 billion ($1.3 billion) to the group's stock market value, as financial analysts said the price was markedly higher than expected.

Shares of Whitbread jumped by 696p, or 17.3 per cent, to £47.16 after the market opened.

The sale will yield a "substantial premium" to the value that would have been created through a spinoff, Whitbread said.

She said: "This transaction is great news for shareholders". The Whitbread board unanimously backed the deal.

Proceeds of the sale will be used to pay down debt and boost the pension fund.

Whitbread bought the chain back in 1995 when it was just made up of 39 outlets. Over the years, it has owned well-known brands such as TGI Fridays, Pizza Hut and Marriott Hotels.

Related News:

  • Harry and Meghan hit the town to watch Hamilton

    Harry and Meghan hit the town to watch Hamilton

    The lovebirds first saw Hamilton together in February, but Wednesday's show actually marks Meghan's third time seeing it. He added: 'I don't know how you guys do this every single night, over and over again, and in this heat as well'.
    US, Mexico reach new trade agreement

    US, Mexico reach new trade agreement

    In fact, on Monday Trump demonstrated this fact on live television ahead of his call with Mexico president, Enrique Peña Nieto . But what Trump's going for here is headlines saying he won ... and too many US media outlets will probably give him that.
    U.S. softens its demand for NAFTA 'sunset clause' - Mexican official

    U.S. softens its demand for NAFTA 'sunset clause' - Mexican official

    Lopez Obrador, a leftist populist who was elected in a landslide on July 1, said Friday that the NAFTA talks were proceeding well. The head of Mexico's biggest business chamber expects key advances in NAFTA talks with the U.S.in the next few days.
  • UCL draw explainer: Confirmed pots and possible groups of death

    UCL draw explainer: Confirmed pots and possible groups of death

    Pot 1 contains the current champions from Europe's biggest domestic leagues and the two sides with the highest UEFA coefficient. Had Benfica lost then Liverpool would have joined Manchester United and Tottenham in pot two .
    Police ID 'Madden 19' tournament shooter as gamer David Katz

    Police ID 'Madden 19' tournament shooter as gamer David Katz

    The LA Times reported he had earlier lost in the tournament which was being live streamed when he opened fire. Nine other people wounded by the gunfire were all in stable condition Sunday after being taken to hospitals.
    Another Australian prime minister deposed by internal party coup

    Another Australian prime minister deposed by internal party coup

    Morrison had previously announced his Deputy Josh Frydenberg would assume his former role as treasurer. 'We've communicated. He was on his way to Quilpie [a drought-affected Queensland town], and we'll be talking in the days ahead, ' he said.
  • Get ready Apple fans! Here’s the date for the next iPhone event

    Get ready Apple fans! Here’s the date for the next iPhone event

    Apple also plans an upgrade to the current iPhone X with a 5.8-inch OLED screen, which is internally dubbed D32, the people said. The iPhone XS will reportedly come in a new, gold colour scheme in addition to the standard black and grey designs.
    Mourners enter Phoenix church for McCain service

    Mourners enter Phoenix church for McCain service

    As she stepped up to her father's casket after her mother, Cindy, she appeared to shake, placing her hand against it. Ducey is also headed for a tough reelection battle in the fall, and is seeking a smooth replacement process.
    OJ Simpson squirms as Sacha Baron Cohen calls him a 'lady-killer'

    OJ Simpson squirms as Sacha Baron Cohen calls him a 'lady-killer'

    Although Simpson laughed along and high-fived Monaldo from time to time, he begged for him to "stop" with the killing jokes. Simpson is comedian Sacha Baron Cohen's latest painfully awkward interview for his Showtime series, " Who Is America? ".
  • Fans can watch Aretha Franklin funeral

    Fans can watch Aretha Franklin funeral

    Dressed in red ruffles and stiletto heels at Tuesday's memorial, the Queen of Soul saved a costume change for Wednesday. Ariana Grande has been added to the list of singers who are scheduled to perform at the funeral, CNN reported.
    OH  leaders react to Sen. John McCain's death

    OH leaders react to Sen. John McCain's death

    Since then, that famed video of him checking a racist during his Presidential Campaign against Barack Obama has gone viral, again. McCain had been a frequent critic of Trump, whose "America First" ideology McCain believed parted from the country's values.
    John McCain: White House urged to lower flags for senator

    John McCain: White House urged to lower flags for senator

    Vice President Mike Pence has also been invited to the funeral. "Our hearts and prayers are with you!" he wrote on Saturday night. Ted Kennedy of MA died in 2009, President Barack Obama ordered flags at the White House be flown at half-staff for five days.


Most liked

Gillum calls on Federal Bureau of Investigation to reveal he's not being investigated
Gillum has embraced liberal policies, such as a "Medicare-for-all" health-care system, but he has not identified as a socialist. One thing is certain: The Gillum-DeSantis race will be bitter, hard fought, and expensive - costing millions of dollars.

Aretha Franklin's funeral to fuse spirit with star power
Friday's funeral service will include tributes from Jennifer Hudson , Faith Hill , Ariana Grande and Stevie Wonder . "I love her. She was my longest friend". 'There are some girls who haven't been born yet. who will be inspired by Aretha , ' he said .

Texas boyfriend found dead after frantic woman filmed ringing doorbells
An investigation is now underway at the home in the 18400 block of Sunrise Pines where the 49-year-old man was found deceased. The video showed the female not wearing any pants or shoes with what appeared to be broken restraints strapped to her wrists.

Serena, Venus to meet for 30th time at US Open
Venus, the 2000 and 2001 champion, made the third round for the 17th time with a 6-4, 7-5 victory over Camila Giorgi of Italy. Alize Cornet of France returned from a break in action during her match Tuesday with her shirt on backward.

Games With Gold Titles Revealed for September 2018
The key difference then was that there was a $99 upfront cost, followed by monthly payments of $14.99 over its 24-month contract. You don't have to plunk down a chunk of change upfront, and after two years the console looks like it will be yours to own.

99.3% Of Demonetised Currency Notes Returned To Banks So Far: RBI
This year, it transferred Rs 500 billion to the government as dividend, compared with Rs 306.6 billion a year ago. Before demonetisation , Rs 500 and Rs 1,000 notes accounted for 86% of the currency in circulation.

Prince Harry and Meghan Markle in love, they adopt a dog together !
Weirdly though, according to a Royal expert, the couple won't have full control of their children like ordinary parents do. Cape Town - If you've ever wondered what a day in the life of the Duke and Duchess of Sussex is like look no further.

Tesla shares drop after Musk abandons buyout plan
The next measure of how Tesla bounces back may come in early October, when it will report third-quarter production and deliveries. The Securities and Exchange Commission initiated an investigation to learn whether Musk had misled investors about the financing.

Trump reportedly nixed statement praising life of John McCain
Colonel Trần Trọng Duyệt praised McCain for both his conduct during his imprisonment and later work as a US politician. Many acknowledged that they didn't always see eye to eye with McCain but they never lost respect for him.

Pope silent on claim he ignored abuse
Meanwhile in Tuam, County Galway, about 1,000 people gathered for a silent vigil to remember the Tuam Babies . Peter Steinfels, author and former co-director of the Fordham Center on Religion and Culture, told the Herald.

Luke Shaw apologises to Manchester United fans after Tottenham humiliation
Maybe it's easy to score but after 1-0 you want to play safe and say, "OK, come on, let's play safe and finish the game 1-0". Pochettino said he believes he was to blame for those defeats because Tottenham's players were not prepared before the game.

Samsung reveals first Android Go phone
On the front, the device has a 24 MP front-facing selfie camera which supports 1080p video recording and also offers face unlock. Let's not forget that the S Pen can also control your PowerPoint presentation slides as a remote clicker.

Chelsea scrap to win over Newcastle, Fulham impress against Burnley
The Magpies manager Rafa Benitez slammed the decision as "soft", and Match of the Day pundit Murphy agreed with his viewpoint. And the joy following Joselu's equaliser was short-lived as DeAndre Yedlin scored an own goal in the final minutes.

Pak Asks US To "Immediately Correct" Statement On Imran Khan-Pompeo Call
Relations between the United States and Pakistan have been tense following U.S. That may surprise some of you, but they had a good call.

Besiktas tease signing of Liverpool's Karius
Liverpool goalkeeper Simon Mignolet is at odds over why fellow shot-stopper Loris Karius was sent out on loan instead of him. Meanwhile, Premier League club Liverpool announced Saturday that Karius joined Beşiktaş on a two-year loan deal.