Starbucks Sells Control of China Business to Hong Kong's Boyu Capital

TaiwanPlus News

US coffee giant Starbucks has signed a deal to sell a 60% stake in its China operations to Hong Kong equity firm Boyu Capital. Starbucks opened its first Chinese outlet in 1999 and now operates nearly 8,000 locations but has been losing market share to domestic rivals.

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00:00American coffee giant Starbucks has signed a 4 billion U.S. dollar deal to sell a majority

00:06stake in its Chinese operations.

00:08Starbucks will create a joint venture with Hong Kong equity firm Boyu Capital.

00:13Boyu will hold a 60 percent stake, while Starbucks will hold 40 percent and continue to own the

00:19brand.

00:20The Seattle-based coffee chain opened its first Chinese store in 1999, and it now operates

00:26nearly 8,000 locations in the country, but it has seen its market share fall sharply

00:31against domestic competitors.

00:33Starbucks retreat comes amid an economic slowdown in China and ongoing political and trade tensions

00:39between Beijing and Washington.

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