Coca-Cola company on Friday said it will buy global coffee chain Costa from Whitbread for £3.9 billion ($5.1 billion).
The global beverage producer made this known in a statement by its Chief Executive Officer, James Quincey.
“Hot beverages is one of the few remaining segments of the total beverage landscape where Coca-Cola does not have a global brand. Costa gives us access to this market through a strong coffee platform,” the statement read.
Coca-cola’s plan to buy Costa is coming amid concerns over health risks associated to the consumption of carbonated drinks which has affected the demand of the company’s products in the United States and some other markets around the world.
Early this month, Coca-cola’s major competitor, PepsiCo had signed a similar deal to buy SodaStream, an Israeli company making machines that carbonate home tap water, for $3.2 billion.
The development also followed concerns over mounting waste from soda cans and plastics in landfills worldwide.
“The announcement today represents a substantial premium to the value that would have been created through the demerger of the business and we expect to return a significant majority of net proceeds to shareholders,” Whitbread chief executive Alison Brittain said in a statement.
