Starbucks Seeks Bidders for China Business Stake: Carlyle, EQT, and Tencent in the Mix

Starbucks is seeking bids for a stake in its China business, with interested parties including Carlyle, EQT, Hillhouse Capital, and Primavera Capital. Other potential bidders include Bain Capital, KKR, and Tencent. The coffee giant aims to optimize its business operations in China, a key market for its global growth strategy. Bidders have been invited to submit non-binding offers within the next two weeks.

Starbucks (SBUX) has invited potential bidders to submit non-binding offers for a stake in its China business, aiming to optimize operations in the key market. The coffee giant has selected a short-listed group of interested parties, including private equity firms Carlyle (CG), EQT (EQTAB), Hillhouse Capital, and Primavera Capital, as well as technology major Tencent (0700.HK), and other potential bidders such as Bain Capital and KKR & Co (KKR.N).

The move comes as Starbucks seeks to address the challenges posed by a sluggish economy and intense competition from local rivals such as Luckin Coffee (OTC:LKNCY), which has gained market share with cheaper products and a greater presence in smaller cities. Starbucks' market share in China has halved in the past five years, falling from 34% in 2019 to 14% in 2024 [1].

The Seattle-based company has been exploring the sale since May, initially inviting interested parties to answer questions about their businesses by late June. It has since selected up to 10 interested parties and signed non-disclosure agreements ahead of granting potential access to financial and operational figures [2]. The structure of the sale and the size of the stake remain undecided, with the company aiming to reach a deal by year-end [3].

Starbucks' CEO Brian Niccol has stated that the company remains committed to its China business and wants to retain a meaningful stake. He emphasized that the company will only enter a transaction if it makes sense for Starbucks [3].

References:
[1] https://www.investing.com/news/stock-market-news/starbucks-expects-nonbinding-bids-for-china-business-within-two-weeks-sources-say-4206031
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_L4N3UD0HF:0-starbucks-expects-non-binding-bids-for-china-business-within-two-weeks-sources-say/
[3] https://www.reuters.com/world/china/starbucks-expects-non-binding-bids-china-business-within-two-weeks-sources-say-2025-08-22/