Coca-Cola wins Chinese approval for £3.9bn purchase of Costa coffee from Whitbread
China has approved Coca-cola’s £3.9bn purchase of Costa coffee
Coca-cola has won regulatory approval in China for its £3.9billion purchase of Costa coffee from Whitbread.
It is a major boon for the American fizzy drinks giant amid a trade spat between the US and China.
Costa will be its first foray into the coffee market as it takes on Starbucks, the world’s biggest coffee brand.
It now needs regulatory approval in the EU and agreement from trustees of Whitbread’s pension fund to get the deal over the finish line, although neither are expected to be a problem.
Whitbread is expected to use the proceeds to plug a £350million pension black hole, pay off debt and return cash to shareholders, while expanding its Premier Inn hotels brand in Germany.