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Starbucks to sell control of China business to Boyu Capital in $4 billion deal

Published: 04 Nov. 2025, 09:12

The Chinese flag flies near the Starbucks logo outside a cafe of the coffee chain in Beijing, China, on Aug. 3, 2022. [REUTERS/YONHAP]

Starbucks said on Monday it would sell control of its China operations to investment firm Boyu Capital in a deal valued at $4 billion, in one of the most valuable divestments of a China unit by a global consumer company in recent years.

Under the agreement, the companies will operate a joint venture with Boyu holding an interest of up to 60 percent in Starbucks' retail operations in China.

Starbucks will retain a 40 percent interest in the joint venture and will continue to own and license the brand and intellectual property to the new entity, the companies said.

Starbucks expects the total value of its China retail business to exceed $13 billion, which includes proceeds from the sale of a controlling interest in the joint venture to Boyu as well as the value of Starbucks retained interest in the venture.

Starbucks is divesting in China as its market share has declined in recent years due to fierce competition from local coffee chains that offer cheaper products amid an economic slowdown that has changed consumer habits.

Its market share in China — home to more than a fifth of its cafes — fell sharply to 14 percent last year from 34 percent in 2019, according to Euromonitor International data.

Reuters