Chinese investor Centurium Capital, known for backing fast-growing coffee chain Luckin Coffee, is considering a proposal to acquire UK chain Costa Coffee from Coca‑Cola Co, according to a report by Bloomberg citing people familiar with the matter.
The discussions are at an early stage and the definitive structure of any offer has not been determined, while Coca Cola Co could still decide to keep the business. It remains unclear whether Centurium would bid directly or via Luckin Coffee, which it controls. It follows reports valuing Costa Coffee at around £1bn ($1.3bn), adding competitive pressure as other buy-out firms and strategic acquirers also consider the opportunity.
Other interested parties reportedly include TDR Capital and Bain Capital’s special situations arm. Coca Cola bought the coffee chain from Whitbread Plc in 2018 for £3.9bn. Centurium portfolio company Luckin’s recent rapid growth has led to it surpassing US-chain Starbucks in China, with more than three times as many stores. It is currently valued at $10.9bn.
