Starbucks (NASDAQ:SBUX) has agreed to sell a 60% stake in its China retail business to Boyu Capital, in a transaction that values the coffee giant’s Chinese operations at over $13 billion.
Under the agreement announced Monday, Boyu Capital will take control of the majority share in Starbucks’ retail network in China, while Starbucks will retain a 40% ownership stake. Despite the sale, the company will continue to own and license its brand and intellectual property in the Chinese market.
The deal values Boyu’s stake at around $4 billion, factoring in the upfront payment, Starbucks’ remaining interest, and long-term licensing fees expected to be paid over the next decade or beyond.
China remains Starbucks’ second-largest market worldwide, after the United States. The company said it expects to complete the joint venture in 2026, pending regulatory approvals.