Starbucks Divests Majority Stake in China Operations to Boyu Capital in a $4B Deal
Starbucks recently unveiled a significant strategic shift in China, divesting a 60% controlling stake in its Chinese operations to the Hong Kong-based investment firm, Boyu Capital. The deal, which is valued at $4 billion, allows Starbucks to retain a 40% interest and continue to own the Starbucks brand and intellectual property in the country.
This development comes as Starbucks grapples with intense competition from local competitors such as Luckin Coffee. Luckin Coffee currently operates more stores in China than Starbucks and has been successful in attracting customers with its lower prices. Through this joint venture, Starbucks plans to grow its current 8,000 Chinese locations to over 20,000 stores in the long run.
“Building on our positive business momentum, our partnership with Boyu will enable Starbucks China to fully unlock the vast market opportunity,” stated Molly Liu, CEO of Starbucks China. The transaction is slated to close in the second quarter of fiscal 2026, subject to regulatory approval.
Source: CNN Business