Coca Cola acquires Costa Coffee in a challenge to Starbucks

In a move aimed at diversifying its business amid falling sales of high-sugar fizzy drinks in an increasingly health-conscious market, Coca Cola has acquired UK-based Costa Coffee, the leading coffee chain in the UK and the second largest in the world after Starbucks.

Valued at £3.9 billion (around $5.1 billion), the agreement will enable the Atlanta-based multinational to expand into the coffee and hot drinks sector.

Acquired by the Whitbread group in 1995, Costa Coffee has around 4,000 stores worldwide (including 2,300 in the UK) as well as 8,000 self-serve Express machines.