Starbucks China Stake Sale Attracts Bids Valuing Business Up to $10 Billion
Starbucks is evaluating multiple non-binding bids for a potential stake sale in its China operations, with valuations ranging between $5 billion and $10 billion. Sources indicate the final deal is likely to be priced near the upper end of this spectrum. This strategic move aims to unlock local capital for expansion amid intensifying competition from domestic rivals like Luckin Coffee, which has eroded Starbucks' market share. The company plans to retain a meaningful equity stake to share in future growth, mirroring strategies previously employed by McDonald’s in the region. Nearly 30 private equity firms, including Centurium Capital, Hillhouse Capital, Carlyle, and KKR, have submitted offers. Goldman Sachs is advising on the transaction. While Starbucks intends to finalize a shortlist within two months, the deal is unlikely to close before year-end. The initiative supports Starbucks' ambitious goal to increase its store count in China from approximately 8,000 to 20,000. Despite recent price cuts and localized marketing efforts to revive performance, the coffee giant faces rising costs and a shifting competitive landscape in its largest market outside the United States.
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Starbucks China Stake Sale Attracts Bids Valuing Business Up to $10 Billion
Starbucks is evaluating multiple non-binding bids for a potential stake sale in its China operations, with valuations ranging between $5 billion and $10 billion. Sources indicate the final deal is likely to be priced near the upper end of this spectrum. This strategic move aims to unlock local capital for expansion amid intensifying competition from domestic rivals like Luckin Coffee, which has eroded Starbucks' market share. The company plans to retain a meaningful equity stake to share in future growth, mirroring strategies previously employed by McDonald’s in the region. Nearly 30 private equity firms, including Centurium Capital, Hillhouse Capital, Carlyle, and KKR, have submitted offers. Goldman Sachs is advising on the transaction. While Starbucks intends to finalize a shortlist within two months, the deal is unlikely to close before year-end. The initiative supports Starbucks' ambitious goal to increase its store count in China from approximately 8,000 to 20,000. Despite recent price cuts and localized marketing efforts to revive performance, the coffee giant faces rising costs and a shifting competitive landscape in its largest market outside the United States.
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