Chinese private equity firm Boyu Capital is leading the race to acquire a controlling stake in Starbucks’ China operations, in a deal that could value the business at more than $4bn, according to a report by Bloomberg.
Boyu remained in contention after rival Carlyle Group reportedly exited the bidding process. Other firms that submitted binding offers included HongShan Group, FountainVest, and Primavera Capital, all valuing Starbucks China at roughly 10x core earnings.
Starbucks is expected to retain a significant minority stake in the business, and additional investors could participate as limited partners.
The move comes as Starbucks faces increasing competition from domestic chains in China, prompting the company to adjust pricing and introduce localised products to maintain market share.
