According to informed sources, Centurium Capital, a major shareholder of Luckin Coffee Inc., is evaluating a potential bid for UK-based coffee chain operator Costa Coffee.
The sources indicate that Centurium Capital is assessing whether to make an offer for Costa Coffee, which Coca-Cola is exploring selling. The specific structure of a potential deal remains undetermined, and it is unclear whether Centurium would bid independently or through Luckin Coffee.
Luckin Coffee has expanded rapidly in recent years, challenging Starbucks in China, the world's second-largest economy. Discussions are still in preliminary stages, and no final decision has been made regarding a formal offer, the sources added.
Anonymous insiders familiar with the private deliberations noted that if Luckin Coffee or Centurium proceeds with an acquisition, they would face competition from other private equity firms and strategic investors also studying the deal. Some sources suggested a potential bid could value Costa Coffee at around £1 billion ($1.3 billion).
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