Bids for Starbucks China have valued the coffee chain’s Chinese operations at up to $10 billion, according to three people familiar with the deal process who spoke to CNBC. Starbucks is currently reviewing offers, deal structures, and proposals on how value could be created post-sale.
“We remain committed to China and want to retain a meaningful stake in the business. Any deal must make sense for Starbucks business and partners,” a Starbucks spokesperson said, confirming the company is exploring the sale of a stake in its China operations.
CNBC reported that Starbucks China has attracted non-binding offers from nearly 30 domestic and foreign private equity firms, valuing the business between $5 billion and $10 billion. The company may retain around a 30% stake.
According to Bloomberg, most potential investors are seeking a controlling interest in Starbucks’ Chinese unit.
Asia-based private equity firms Centurium Capital, which holds a stake in Starbucks’ competitor in China, Luckin Coffee, and Hillhouse Capital are among the contenders vying for a stake in the business, the report added.
Since Starbucks CEO Brian Niccol took the helm last September, addressing slowing sales in China has been a top priority. The business faces stiff competition from lower-priced local rivals like Luckin Coffee.
“We see significant long-term potential in China and are evaluating the best ways to capture the future growth opportunities. We are looking for a strategic partner with like-minded values, who shares our vision to provide a premium coffeehouse experience,” the spokesperson added.
Last month, Starbucks lowered prices on some products in China and stated it was not currently considering a full sale of its local operations.
According to CNBC, Starbucks may keep a 30% stake in the business, with the remaining shares divided among a group of buyers, each holding less than 30%. The company is reviewing offers from roughly 30 domestic and international private equity firms.
Bidders could be shortlisted within two months, though CNBC reports the deal is unlikely to close this year.
Starbucks operated 7,594 stores in China, as noted in its 2024 annual report.
In its latest quarterly results, sales in China—Starbucks’ second-largest market—were flat year-over-year, ending a streak of four consecutive quarters of declines.
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