Starbucks May Sell Controlling Stake in China Unit

Starbucks is evaluating the sale of a significant stake in its China business, with bids from nearly 30 private equity firms, including Centurium Capital, Hillhouse Capital, Carlyle Group, and KKR, valuing the unit between $5 billion and $10 billion. While initial plans focused on a minority stake sale, Starbucks is now open to selling a controlling share, as most bids seek decision-making authority. The company still plans to retain a meaningful stake, potentially around 30%, and emphasizes that any deal must support its long-term vision and interests in China. Starbucks lost its position as China's largest coffee retailer to Luckin Coffee in 2023, with market share dropping from 34% in 2019 to 14% in 2024. A shortlist of bidders is expected within two months, but a final agreement may not close by year-end. The review process is ongoing, and no final decisions have been made regarding deal structure or partner selection.