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'A huge premium': Here's how analysts are reacting to Coca-Cola's deal to buy Costa Coffee

Will Martin   

'A huge premium': Here's how analysts are reacting to Coca-Cola's deal to buy Costa Coffee
Stock Market1 min read

Coke cans

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Coca Cola set to raise prices soon

Coca-Cola on Friday announced a surprise move to buy Costa Coffee, one of Europe's largest cafe chains, from current owners Whitbread for £3.9 billion ($5.1 billion).

Whitbread has been clear for a while that it wanted to offload Costa, and had initially planned to spin off the company from its main business. However, it settled on a sale after an approach from Coca-Cola in June.

On the surface, the move makes sense for both sides of the deal, with Whitbread earning significantly more from the sale than it would have from a spin out, and Coca-Cola getting a well established brand in a space it is looking to enter.

But how are analysts in the City of London and on Wall Street reacting to the news, one of the biggest leisure deals of 2018 so far? To find out, Business Insider rounded up some of the notes and analysis circulated on Friday.

Check them out below.

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