Coca-Cola agrees to buy Costa Coffee chain for $5.1 billion

Aug 31, 2018
  • By Bob D’Angelo, Cox Media Group National Content Desk
Daniel Berehulak/Getty Images
Costa has agreed to a $5.1 billion offer from Coca-Cola.

Coca-Cola is getting a jolt of caffeine.

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The company agreed to buy Costa, the largest chain in the United Kingdom, for $5.1 billion, The Guardian reported Friday.

Alison Brittain, the chief executive of Whitbread, which owns Costa, said Coca-Cola’s offer led to “an absolutely stonking deal,” the newspaper reported.

Costa has nearly 4,000 stores in 32 countries, The Guardian reported.

The deal will give Coca-Cola “a strong coffee platform across parts of Europe, Asia Pacific, the Middle East and Africa, with the opportunity for additional expansion," the company said in a statement.

Whitbread bought Costa in 1995 from its founders, Sergio and Bruno Costa. Stock for Costa jumped 15 percent Friday, The Guardian reported.

The deal still needs to be approved by shareholders and regulators, CNN reported. The companies expect to complete the deal in early 2019.