Coca-Cola to buy Costa chain for ￡3.9bn, Homebase faces make-or-break vote, and more top news

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Coca Cola is set to acquire the Costa Coffee chain for ￡3.9bn. Leisure group Whitbread said the board agreed unanimously that the sale was in the best interests of the shareholders. Costa, now the UK’s biggest coffee chain, has more than 2,400 coffee shops in the UK, alongside 1,400 outlets in 31 countries. James Quincey, Coca-Cola's chief executive, said the acquisition offers Coca Cola access to the hot beverages market – the only beverages segment where Coca-Cola does not have a global brand.

Homebase will today face a make-or-break vote to determine the future of the DIY retailer. The chain has proposed a rescue plan which includes closing 42 stores and cutting rents on others, but faces opposition from landlords. Owner Hilco Capital has warned it is "very likely" Homebase will go into administration without a deal. The chain owes around ￡1.2bn to employees, landlords, suppliers and other creditors. Meanwhile, controversial payday lender Wonga has lost its battle for survival. The company collapsed into administration after it was overwhelmed by a surge in compensation claims from former customers.

Shoppers could soon have to pay 10p for each single-use bag, regardless of their size. Introduced in October 2015, the plastic bag scheme saw retailers with more than 250 staff charge customers a 5p plastic bag fee. Prime Minister Theresa May is now considering extending the scheme to all retailers, and charging 10p per bag regardless of how big they are. The Department for Environment, Food & Rural Affairs reports there has been an 86% fall in the number of disposable bags issued by supermarkets participating in the scheme since 2015.

Jamie Oliver has blamed Brexit for his restaurant chain’s woes, after revealing Jamie’s Italian came within hours of collapse last year. The TV chef injected ￡13m of his own money into the business, telling the Financial Times: “I had two hours to put money in and save it.” Oliver claims Brexit was partly responsible for the restaurant chain’s decline, also blaming food costs and an increase in the minimum wage. Oliver has since closed 12 of the chain’s 37 restaurants and laid off around 600 staff.

Lloyds of London is set to enter the cannabis insurance market in Canada. The company has given underwriters the go ahead to insure cannabis-related business in Canada. This is Lloyd’s second foray into cannabis markets, previously offering insurance in the US only to exit again in 2015, and marks the latest effort to find growth opportunities outside of traditional markets. The Canadian Cannabis Act, which comes into force in October, will see Canada become the only Group of Seven nation to legalise recreational use of marijuana.

This article has been updated. From earlier: A nonstop flight between London and Sydney is getting closer to reality.

Idea of the Day:  Feeling nervous when interviewing for a new job can also be read as a positive, says Hamilton Bradshaw CEO James Caan.

“Don’t worry unduly about showing nerves: they prove you really want the job. A little dash of self-deprecating humour can help relax the mood.?”

— Natalie MacDonald