US EditionStarbucks to sell control of China business to Boyu Capital in $4 billion deal
Starbucks sold a controlling stake to Boyu Capital to fund expansion beyond 8,000 stores amid rising competition and slowing growth, with China sales comprising 8.7% of global revenue.
- Starbucks is selling a 60% stake in its China business to investment firm Boyu Capital for $4 billion, valuing its retail operations in China at $13 billion.
- Starbucks entered China more than 25 years ago and it is now the company's second-largest market after the US, but has struggled in recent years against local rivals like Luckin Coffee.
- The new joint venture will be headquartered in Shanghai, with Starbucks owning 40% and plans to grow to 20,000 locations in China from the current 8,000.
118 Articles
118 Articles
The cupcake coffee giant in China suffers from fierce competition from local operators, including Luckin Coffee, which opened 22,000 outlets in eight years.
Meet the investor buying 60% of Starbucks' China business in a $4 billion deal
Starbucks has sold 60% of its China business to Boyu Capital.Cheng Xin/Getty ImagesStarbucks is selling 60% of its China business to Boyu Capital, a China-focused private equity firm.Boyu Capital backs retail heavyweights Alibaba Group and Meituan.The sale comes as Starbucks is struggling to turn around its China business.Starbucks' China business is getting a big jolt with a new majority owner.The Seattle-based coffee chain announced on Monday …
Only in the USA has Starbucks more branches than in China, but the business in the country weakens. Now the US coffee chain sells 60 percent to a Chinese investment company.
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