Coca-Cola Explores Sale of Costa Coffee, Unwinding $5B Deal
KO sits 33% above its 52-week low of $66.
Summary
Coca-Cola is reportedly seeking to sell Costa Coffee, the British coffeehouse chain it acquired for $5 billion in 2019. The move would unwind a major diversification bet and refocus the company on its core beverage portfolio. No buyer or valuation has been disclosed, and the process may be exploratory. This follows a period of operational challenges, including the fairlife ransomware attack and a potential $14B+ IRS tax liability disclosed in the latest 10-Q. A sale would generate significant proceeds but also mark a strategic retreat from the coffee category.
At the time of this announcement, KO was trading at $87.91 on NYSE in the Trade & Services sector, with a market capitalization of approximately $378.2B. The 52-week trading range was $66.00 to $92.49. This news item was assessed with neutral market sentiment and an importance score of 8 out of 10. Source: Reuters.