Starbucks sold 60% of its shares in China in a 4 billion dollar transaction

Starbucks has decided to sell the majority of its operations in China, forming a joint venture with Boyu Capital, valued at four billion dollars. This is one of the largest recent sales of a consumer company in China, the world's second-largest economy. According to the agreement, Boyu will own 60% of the new entity, while Starbucks will retain 40% and will continue to hold the brand license.

This move comes in the context of Starbucks' declining market share in China, from 34% in 2019 to 14% last year, amid competition from local rivals such as Luckin and Cotti. Starbucks intends to expand its network of cafes in China from 8,000 to over 20,000, and Boyu will help open new locations in smaller cities and improve the efficiency of existing stores. This strategy aligns with the trends of other global companies that have adopted similar approaches in China.