Starbucks Weighs Selling Stake in Chinese Market

Published 6 hours agoSBUX

Starbucks Weighs Selling Stake in Chinese Market

Starbucks is considering the sale of a stake in its China business, aiming to enhance its growth prospects in what is its second-largest market globally. According to reports from Reuters, private equity firms such as KKR & Co., Fountainvest Partners, and PAG have expressed interest in acquiring a stake. Starbucks is also exploring the possibility of partnering with prominent Chinese firms like China Resources Holdings and Meituan.

While the specifics of the sale, including the size of the stake, remain under discussion, the potential valuation of Starbucks' China operations could exceed $1 billion. A franchisee deal with a strategic partner is among the options being considered. As part of these ongoing negotiations, Rachel Ruggeri, Starbucks' Executive Vice President and Chief Financial Officer, plans to visit China soon to advance the talks.

Starbucks' maneuver to potentially sell a stake comes as it encounters increasing competition in China from local companies like Luckin Coffee. With these challenges in mind, the coffee giant has been exploring strategic partnerships since November 2024, considering collaborations with local partners to solidify its standing in the Chinese market.

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