Boyu Capital is considering bringing Tencent Holdings, GIC, and potentially other investors on board as limited partners in its planned acquisition of a majority stake in Starbucks Corp’s China operations, according to a report by Bloomberg citing sources familiar with the matter.
The private equity firm has agreed to acquire up to 60% of Starbucks’ Chinese business and aims to accelerate expansion into smaller cities while increasing the brand’s presence at high-footfall locations such as tourist attractions, airports, and subway stations. Discussions are ongoing and may not lead to a final agreement, the sources added.
Starbucks, which operates roughly 8,000 stores in China since its 1999 market entry, has previously announced plans to grow its footprint to approximately 20,000 outlets. The company is part of a wider trend of foreign retailers partnering with local investors to bolster growth in China amid intensifying competition from domestic chains. Restaurant Brands International, for example, recently sold a controlling stake in Burger King China to CPE.
Sources also indicated that Boyu is in talks with banks to secure financing of around $1.4bn to support the acquisition, with the Chinese operations valued at approximately $4bn. The Starbucks-Boyu joint venture is expected to be finalised in the second quarter of 2026.
