Coca-Cola on Friday announced a surprise move to buy Costa Coffee, one of Europe’s largest café chains, from the British company Whitbread for £3.9 billion, or $5.1 billion.
Whitbread has been clear for a while that it wanted to off-load Costa, and it initially planned to spin off the company from its main business. It settled on a sale, however, after an approach from Coca-Cola in this month.
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 spinout 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.