Starbucks Attracts $10 Billion In Bids For China Unit Amid Rising Competition

Starbucks Corp. SBUX is reportedly attracting strong investor interest in its China unit, with potential stake valuations reaching up to $10 billion.

CNBC reports that close to 30 private equity firms, both domestic and international, have submitted non-binding bids for a stake in Starbucks’ China business. Valuations range between $5 billion and $10 billion, with most offers leaning toward the upper end of that spectrum.

This strategic review reflects mounting pressure from Chinese competitors, which has significantly impacted Starbucks’ market position. According to Euromonitor International data, the company’s market share plummeted from 34% in 2019 to 14% in 2024.

Related: Starbucks Stock Drifts Higher Amid Brewing China Business Sale Chatter

The Seattle-based coffee giant is reviewing proposed deal structures, value creation plans, and alignment with potential partners. Sources familiar with the matter told that Starbucks aims to finalize a shortlist within two months, although the complete transaction may extend beyond year-end.

In a statement to CNBC, a Starbucks spokesperson said the company plans to keep a significant stake and emphasized that “any deal must make sense for Starbucks business and partners.” The company is seeking a strategic partner aligned with its long-term vision for China.

Centurium Capital, Hillhouse Capital, The Carlyle Group, and KKR & Co. are reportedly among the firms vying for a stake. According to sources, Starbucks is likely to retain about 30% of the unit, with the remaining interest potentially divided among multiple investors.

In June, reports confirmed that Starbucks had initiated a formal process to sell a stake in its China business. The company began engaging with potential investors in May, with Goldman Sachs serving as advisor.

This followed a report by Chinese outlet Caixin, which suggested Starbucks was exploring a full exit, a claim the company denied. A spokesperson told Reuters, “Starbucks is not currently considering a full sale of its China operations.”

Price Action: At the last check on Wednesday, SBUX shares were trading higher by 0.48% to $95.40 premarket.

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