The announcement last Friday of Costa’s acquisition by Coca-Cola, has not been praised on the stock market for the US giant. The title Coca-Cola has lost another 0.85% to $ 44.57, recording a fourth consecutive session of decline.

The group announced at the end of the week, reached a definitive agreement to acquire Costa Limited, a company founded in London in 1971, which has today become a major brand of coffee. Costa’s acquisition from its $ 5.1 billion parent company Whitbread PLC is expected to provide Coca-Cola with a solid coffee platform in parts of Europe, Asia Pacific, the Middle East East and Africa, with the possibility of further expansion. Costa’s operations include nearly 4,000 points of sale.

Costa also brings to Coca-Cola solid expertise across the coffee supply chain, including, buying, selling and distributing. This will complement the existing capabilities within the Coca-Cola system.

Costa brings new capabilities and coffee expertise to Coca-Cola, and our system can create Costa brand growth opportunities globally, “said James Quincey, President and CEO of Coca-Cola.  Hot drinks belong to one of the few segments in the total beverage sector where Coca-Cola does not have a global brand. Costa gives us access to this market with a solid coffee platform.

Upon closing, Coca-Cola will acquire all issued and outstanding shares of Costa Limited, a wholly owned subsidiary of Whitbread. This subsidiary brings together all the existing and operating companies of Costa. Whitbread will seek shareholder approval for the transaction, which is scheduled for mid-October. The transaction is subject to customary closing conditions, including anti-monopoly approvals in the European Union and China. Closing is scheduled for the first half of 2019.

Coca-Cola expects the transaction to be slightly accretive in the first full year, excluding the potential impact of acquisition accounting. Projections for 2018 are unchanged. The company’s long-term targets also remain unchanged.