Starbucks Considers Major Stake Sale in China Amid Acquisition Proposals

Starbucks has reportedly received several acquisition proposals from potential investors for its overseas business, with many of these investors aiming to secure controlling stakes. The company is currently in the process of evaluating these proposals and selecting a group of potential investors to advance to the next round of bidding. Starbucks may share detailed financial and operational information with these bidders to assist them in assessing the valuation of the assets.

Initially, Starbucks was inclined to sell only a minority stake to partners who could help revitalize growth in its China business. However, the company is now considering selling a larger proportion of its shares based on valuation and other factors. Industry participants and private equity firms submitted non-binding acquisition proposals in June, with most seeking controlling stakes to gain decision-making power over the China business and align it with their investment strategies.

The evaluation of this business by Starbucks is still in its early stages, and no final decisions have been made regarding the transaction structure, valuation, or potential bidders. In a statement, the company expressed its optimism about the "long-term, enormous potential" of the China market. Starbucks reiterated its commitment to the China market and its intention to retain a significant stake in the business.