Coca-Cola has ended its plans to sell the Costa Coffee chain after the bids from private equity firms did not meet expectations.

According to the Financial Times, two people familiar with the matter stated that the global beverage brand concluded negotiations with bidders in December after a month-long auction process.

The company had expected a deal that would value Costa at around £2bn, which is almost half of the £3.9bn Coca-Cola paid in 2018.

However, the gap between the expectations and offers was too unprofitable, which led to the decision to end the overall sale.

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Coca-Cola purchased the business to acquire a foothold in the coffee market but has struggled to maintain and grow the chain between rising costs, intense competition and weaker sales.

In recent years the coffee chain has dealt with pressure from rivals including Gail’s, McDonald’s and Greggs.

Last year the group stated that the brand had “not quite delivered” on investment, with a 3% drop in sales, which was driven by Costa’s UK performance.

Parent company of Asda TDR Capital was among the potential bidders seeking out Costa Coffee after the UK’s largest café chain was placed for bidding.

Coca-Cola has been approached for comment.