Starbucks has sold a majority stake in its China retail operations to Boyu Capital for $4bn, setting up a joint venture where Boyu will hold up to 60% of the business. Starbucks retains a 40% stake and will continue to own and license the brand to the new venture.

The overall valuation of Starbucks’ China retail business is estimated to exceed $13bn, including the proceeds from selling a majority stake to Boyu. Boyu Capital partner Alex Wong stated the partnership aims to combine Starbucks’ global coffee leadership with Boyu’s market insights to accelerate growth.

The joint venture, headquartered in Shanghai, will operate Starbucks’ 8,000 coffeehouses in China with plans to expand to 20,000 sites. Starbucks Coffee Company chairman Brian Niccol expressed excitement about Boyu’s local knowledge accelerating growth, especially in smaller cities and new regions.

Starbucks will retain ownership of non-retail assets like the Kunshan Coffee Innovation Park. Boyu was selected as the buyer after a competitive process. The joint venture is expected to be finalized in the second quarter of Starbucks’ fiscal 2026 pending regulatory approvals.

Read more at Yahoo Finance: Starbucks to cede control of China retail arm to Boyu in $4bn deal