Private equity firms Carlyle and Boyu Capital are thought be the frontrunners to acquire a majority interest in Starbucks Corp (NASDAQ:SBUX, ETR:SRB)’s China operations, the Financial Times reported on Friday.
The media outlet noted that the entirety of Starbucks’ operations in China is expected to be valued at $4 billion, not including royalties, which are still being negotiated.
Starbucks confirmed to the Financial Times that it is reviewing offers from five bidders, and a final decision from the company’s management is anticipated by the end of October.
The bidders could form a consortium, with Starbucks possibly retaining up to 49% ownership.
The coffee chain giant has stated previously that the total value of the transaction is likely to be more than $10 billion, considering account partner investment, future royalty payments, and the value of Starbucks’ remaining interest in the business.
Starbucks' China market share has declined from 34% in 2019 to 14% in 2024, according to market data provider Euromonitor, Reuters reported on Thursday.
Luckin, Starbucks' biggest competitor in China, now operates about 26,000 outlets in the country, compared with 7,828 Starbucks stores as of the end of June 2025.
Starbucks shares edged up 0.2% in early Friday trading.