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Weekend Salvage Negotiations Threaten Major Coffee Chain Deal

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Weekend Salvage Negotiations Threaten Major Coffee Chain Deal

Weekend salvage negotiations are underway as a major beverage company tries to save a planned divestment. The discussions involve a private equity firm and continue under tight deadlines.
Reports say both sides returned to talks after earlier price disputes. However, the gap remains difficult to bridge. As a result, uncertainty still clouds the transaction.
Sources say the buyer became the preferred bidder earlier this week. Even so, valuation concerns slowed momentum. Therefore, negotiators reopened urgent discussions.
The deal structure adds further pressure. The seller plans to keep a minority stake. That detail, however, complicates pricing expectations.

Background

The coffee brand joined the beverage group in 2018. At the time, the purchase aimed to expand beyond soft drinks. In addition, it strengthened competition in the global café market.
Since then, the chain has expanded across regions. It now operates thousands of outlets in Europe, Asia, and the Middle East. This scale makes the business attractive to investors.
Advisers began reviewing options earlier this year. These included a full or partial exit. For example, a stake sale could allow exposure without full ownership.

Outlook

Market analysts say private equity interest remains strong. However, higher borrowing costs have shifted deal calculations. As a result, buyers push harder on valuation.
The seller has not confirmed whether the sale will proceed. Some reports suggest offers could still be rejected. Therefore, walking away remains possible.
If talks fail, the company may pause the process. That pause could last until market conditions improve. Meanwhile, the coffee chain would operate as usual.
Industry watchers say the outcome reflects wider trends. Consumer companies now reassess portfolios during volatile markets. In addition, buyers act more cautiously.
For now, attention remains on the talks. A deal could emerge soon. Otherwise, the process may quietly fade.

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