Starbucks China Deal: $4B Stake Sold to Boyu

Starbucks’ China deal represents a major strategic shift as the coffee giant sells a 60% stake in its China operations to private equity firm Boyu Capital in a $4 billion sale. The joint venture aims to revitalize growth in China, where Starbucks has struggled against fierce local competition and declining market share.

Under the agreement announced November 4, 2025, Boyu Capital will hold up to 60% interest in the joint venture while Starbucks retains 40% ownership. Starbucks will continue to own and license its brand and intellectual property to the new entity. The $4 billion sale marks one of the largest retail divestments in China by a Western company in recent years.

Boyu Capital will hold up to 60% interest in the joint venture while Starbucks retains 40% ownership## Inside Starbucks China Deal: $4B Joint Venture With Boyu Capital

Busy Starbucks location in China with baristas serving customers – Source: ReutersBusy Starbucks location in China with baristas serving customers – Source: Reuters### Strategic Partnership Details

The Starbucks China deal addresses mounting challenges from local competitors like Luckin Coffee, which has overtaken Starbucks in both store count and sales. Boyu Capital brings deep local expertise and connections in Chinese commercial real estate, having recently acquired stakes in SKP luxury malls and property management firms.

Brian Niccol, chairman and chief executive officer at Starbucks Coffee Company, had this to say:

Brian Niccol

“Boyu’s deep local knowledge and expertise will help accelerate our growth in China, especially as we expand into smaller cities and new regions. We’ve found a partner who shares our commitment to a great partner experience and world class customer service. Together we will write the next chapter of Starbucks storied history in China.”

“Boyu’s deep local knowledge and expertise will help accelerate our growth in China, especially as we expand into smaller cities and new regions. We’ve found a partner who shares our commitment to a great partner experience and world class customer service. Together we will write the next chapter of Starbucks storied history in China.”

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Starbucks branded booth at Chinese retail expo – Source: ReutersStarbucks branded booth at Chinese retail expo – Source: ReutersStarbucks anticipates the overall value of its China retail operation to be greater than $13 billion, which consists of the proceeds of the $4 billion sale plus retained equity and the licensing fees over a decade. The joint venture has already 8,000 stores in China and plans to expand significantly.

Alex Wong, Partner at Boyu Capital, stated:

Alex Wong

“This partnership reflects our shared belief in the enduring strength of that brand and the opportunity to bring even greater innovation and local relevance to customers across China. Together, we aim to combine Starbucks global coffee leadership with Boyu’s deep market insights and expertise to accelerate growth and create exceptional experiences for millions of customers.”

“This partnership reflects our shared belief in the enduring strength of that brand and the opportunity to bring even greater innovation and local relevance to customers across China. Together, we aim to combine Starbucks global coffee leadership with Boyu’s deep market insights and expertise to accelerate growth and create exceptional experiences for millions of customers.”

Molly Liu, CEO of Starbucks China, said:

Molly Liu

“Building on our positive business momentum, our partnership with Boyu will enable Starbucks China to fully unlock the vast market opportunity.”

“Building on our positive business momentum, our partnership with Boyu will enable Starbucks China to fully unlock the vast market opportunity.”

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Also Read: US Weaponizes Oil Politics to Break BRICS’ Russia-China-India AxisIt is also anticipated that the deal will close in the second quarter of fiscal 2026, subject to regulatory approval. This Starbucks China acquisition is a strategic gamble that local experience coupled with Starbucks brand name can enable the company to reclaim lost market share in one of its key markets globally.