According to informed sources, Luckin Coffee Inc. is evaluating a potential bid for Nestle S.A.'s Blue Bottle Coffee chain, aiming to enhance its brand image and expand into the premium coffee market.
Sources who requested anonymity due to the confidential nature of discussions revealed that Luckin Coffee and its major shareholder Centurium Capital are also assessing other acquisition targets. These include the operator of % Arabica coffee shops in China, which counts private equity firm PAG among its investors.
The companies previously considered Costa Coffee, owned by Coca-Cola, but sources indicated this option is unlikely to be pursued further.
Discussions remain at an early stage and may not result in a formal offer, the sources noted. Representatives for Nestle, PAG and Coca-Cola declined to comment. Centurium Capital, Luckin Coffee and % Arabica didn't immediately respond to requests for comment.
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