Investment firms like Carlyle Group and EQT are preparing final bids to buy Starbucks’ business in China, valued at up to $5 billion. Starbucks plans to retain a stake in China, its second-largest market. Market share in China dropped to 14% last year, with local chains like Luckin dominating with more cafes.

Luckin Coffee, with twice as many cafes as Starbucks in China, is the largest coffee chain in the country. Up-and-coming chain Cotti Coffee is also expanding rapidly in China and North America. Starbucks faces declining sales in the US as Luckin and Cotti expand in the US market.

Starbucks CEO Brian Niccol aims to revitalize falling US sales by focusing on a cozy coffee shop vibe over mobile-order efficiency. While Starbucks plans to stay committed to China long-term, bringing in an outside buyer could help Niccol focus on the US market. Chinese rivals like Luckin emphasize grab-and-go models over cozy cafes.

Read more at Yahoo Finance: Starbucks Whips Up Big Bids for Its Chinese Biz