Starbucks SBUX Soars 3.21% on China Stake Sale Interest

On July 9, 2025, Starbucks' stock rose by 3.21% in pre-market trading, reflecting a positive market sentiment towards the company's recent developments.

Starbucks China's potential sale of its stake has attracted significant interest from various private equity firms. Nearly 30 domestic and international private equity firms, including Centurium Capital, Hillhouse Capital, Carlyle Group, and KKR, have submitted non-binding offers. The valuation of Starbucks China is estimated to be between $50 billion and $100 billion, with the final offer expected to be close to the upper limit. Starbucks is evaluating the bids, transaction structures, and post-sale value creation plans from the potential buyers. The selection process is expected to take about two months, but the entire transaction is unlikely to be completed by the end of this year. Starbucks may retain 30% of the stake, with the remaining shares distributed among the buyers, each holding no more than 30%.

Starbucks has stated that it is not considering a full sale of its China business at this time. The company is focusing on evaluating the best ways to seize future growth opportunities and maintain a positive development trend in its China operations. The potential sale is seen as a strategic move to address intense market competition, particularly from local brands like Luckin Coffee and Kedi, which have rapidly expanded their market share through aggressive pricing and delivery services. By partnering with local or private equity firms, Starbucks aims to accelerate its localization efforts, menu innovation, and channel expansion in China.