(Updates to add response from KKR in the fifth paragraph.)

KKR (KKR) is in discussions with The Coca-Cola (KO) to acquire its Costa Coffee business, Sky News reported Monday.

The New York-listed private equity firm has re-entered talks after previously stepping back from the bidding process in August. Other interested parties include Bain Capital and TDR Capital, with management presentations expected this week, according to the report.

Coca-Cola, which acquired Costa in 2021 for 3.9 billion pounds ($5.2 billion), may seek around 1.5 billion pounds for the coffee chain, though the final valuation remains uncertain. The company plans to retain Costa's ready-to-drink products sold through retailers, the report added.

Costa operates more than 2,000 stores in the UK and over 3,000 globally.

KKR declined to comment, while Coca-Cola did not immediately respond to MT Newswires' request for a comment on the matter.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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