Coca-Cola (NYSE:KO) has decided to halt efforts to sell its Costa Coffee business after receiving bids from private equity firms that did not match its valuation expectations, the Financial Times reported on Wednesday, citing sources familiar with the process.

According to the report, the U.S. beverage group ended discussions with the remaining bidders in December, effectively closing an auction that had been under way for several months.

Parties involved in the later stages of the process included TDR Capital, the owner of Asda, and Bain Capital’s special situations fund. Earlier rounds had attracted interest from Apollo, KKR (NYSE:KKR) and Centurium Capital, the FT said.

Coca-Cola was understood to be targeting a price of around £2 billion for Costa, roughly half of the £3.9 billion it paid to acquire the chain from Whitbread in 2018. Talks with TDR reportedly included the option for Coca-Cola to retain a minority stake in the business.

The move comes ahead of a leadership change at Coca-Cola, with chief operating officer Henrique Braun due to take over as chief executive from James Quincey in March. One person cited by the FT said a potential sale could still be reconsidered over the medium term.

Costa, which operates more than 2,700 outlets across the UK and Ireland, has faced headwinds from subdued consumer spending and fierce competition in the coffee market.

Coca-Cola stock price

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