Starbucks Corp (NASDAQ:SBUX, ETR:SRB) is currently seeking bids for a stake in its China business, with the potential valuation of this unit reaching up to $10 billion, according to a Reuters report.
China represents Starbucks’ largest market outside the US, contributing more than 8% of the company’s global revenue.
The potential sale comes as Starbucks faces stagnating or declining same-store sales in China, coupled with rising competition from lower-priced local brands.
In response, the company has implemented strategies such as price adjustments, localized marketing, and plans to nearly triple its store footprint in China.
The sale process has drawn interest from around 30 domestic and international private equity firms, including Centurium Capital (a major Luckin Coffee shareholder), Hillhouse Capital, Carlyle, KKR, Bain Capital, and Tencent, per the Reuters report.
Starbucks is said to be seeking a strategic partner aligned with its brand values to maintain its premium coffeehouse experience. The company plans to retain a meaningful stake, likely around 30%, while distributing the remainder among various investors, with no single party holding a controlling share.
The sale process began in May 2025. Starbucks invited shortlisted bidders, including Carlyle, EQT, Hillhouse Investment, Primavera Capital, Bain Capital, KKR, and Tencent, to management presentations where financial and operational details were disclosed.
Non-binding offers from these parties are expected within weeks.