Starbucks To Sell Majority Stake In China Business

Benzinga

Starbucks sold a 60% stake in its China operations to Boyu Capital for $4 billion, creating a new joint venture with 40% ownership retained. CEO Brian Niccol said the deal will help accelerate expansion to 20,000 stores as Starbucks regains momentum against local competitors like Luckin Coffee.

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00:00It's Benzinga, bringing Wall Street to Main Street.

00:02Starbucks agreed to sell a 60% stake in its China operations to Boyu Capital for $4 billion,

00:07according to Bloomberg. The deal forms a new joint venture, giving Starbucks 40% ownership

00:11and continued brand licensing rights. The partnership follows years of declining momentum

00:15amid rising competition from local rivals like Luckin Coffee and growing nationalism.

00:20CEO Brian Nichols said Starbucks aims to expand from 8,000 to over 20,000 stores in China.

00:26Apparel sales in China rose 2% last quarter, marking the first positive same-store growth

00:30in over a year. Shares rose less than 1% after hours.

00:34For all things money, visit Benzinga.com.

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