“The investment firm has been evaluating whether to make an offer for Costa Coffee, which is being sold by Coca-Cola Co,” the people said.

The exact structure of any proposal hasn’t been finalised, and it’s unclear whether Centurium would potentially be bidding itself or through Luckin.

Luckin has grown rapidly in recent years, brushing past Starbucks Corp in China, where it has over 26,000 stores – more than three times as many as the Seattle-based coffee giant.

Luckin has also been expanding overseas with stores in Malaysia, Singapore and now the US after entering New York in June.

“UK buyout firm TDR Capital and Bain Capital’s special situations arm are also among parties that have been considering bids for Costa Coffee,” the people said.

The next round of offers is expected in the coming weeks, according to the people.

“Some suitors have been discussing potential offers valuing Costa Coffee at £1 billion (US$1.3 billion) or more,” some of the people said.

“Deliberations are ongoing, and Coca-Cola could still decide to keep the business,” the people said.

Spokesman for Bain and TDR declined to comment.

Representatives for Centurium, Luckin, Costa Coffee and Coca-Cola didn’t immediately respond to requests for comment.

Coca-Cola bought Costa Coffee from UK hotel and restaurant group Whitbread Plc in 2018 for £3.9 billion, marking its big move into coffee and retail outlets.

The US soda giant made an unsolicited approach for the business, which Whitbread had announced it would spin off.

Luckin’s American depositary receipts fell 4.5% yesterday.

The company has a market value of US$10.9 billion.