Starbucks to Sell China Retail Control to Boyu

Starbucks agreed to sell control of its mainland China retail operations to Boyu Capital, with Boyu taking up to a 60% stake for roughly $4 billion and Starbucks retaining a 40% stake while continuing to license its brand and intellectual property. The transaction values Starbucks' China business at more than $13 billion when combining sale proceeds, the retained stake and expected licensing income over the next decade. Starbucks currently operates about 8,000 stores in China and expects the partnership to accelerate growth and expand the network to more than 20,000 stores, focusing on its premium in-store experience. The move is intended to address sales weakness and intensified competition from lower-priced domestic rivals such as Luckin Coffee and Cotti. Boyu, incorporated offshore with founders who are prominent Chinese business figures, beat other bidders including Carlyle and Hillhouse and will run the joint venture alongside Starbucks.