Starbucks has announced a deal to sell a 60% stake in its China business to Boyu Capital for $4 billion, forming a joint venture to enhance its operational presence in the growing Chinese market.

Target Information

Starbucks Corporation has entered into a significant agreement to sell a 60% stake in its China business to Boyu Capital, valuing the deal at approximately $4 billion. This partnership will establish a joint venture responsible for managing Starbucks' nearly 8,000 stores across the Chinese market. Following the transaction, Starbucks will maintain a 40% stake in the newly formed entity while continuing to own and license its brand and intellectual property.

Projected to close in early 2026, this agreement will assess Starbucks' total retail operations in China at over $13 billion. This valuation includes the sale proceeds, Starbucks' retained share, and anticipated licensing revenue over the upcoming decade. Starbucks CEO Brian Niccol underscored the advantages of this collaboration, highlighting the combination of Starbucks' brand strength and operational expertise with Boyu's deep understanding of the local market.

Industry Overview in China

Within the retail landscape in China, Starbucks operates in a highly competitive sector, marking the country as its second-largest market globally, contributing about 8% to the company’s revenue. Over the past few years, local