Boyu Capital has become the leading contender to acquire a controlling stake in Starbucks’s China operations, as reported by Bloomberg.

The private equity company has reportedly outbid rivals including Carlyle Group. A deal could value Starbucks’s Chinese business at more than $4bn.

Negotiations between Starbucks and Boyu are expected to take several months and are not guaranteed to translate into a deal.

Internet companies and other investors could participate as limited partners to co-finance a potential transaction.

Requests for comment to Starbucks and Boyu went unanswered, while Carlyle declined to provide any statement.

In September 2025, Starbucks announced that Carlyle Group, EQT, HongShan Capital Group and Boyu Capital were the shortlisted parties for the sale of its China stake. The final round of bidders also encompassed China-based private equity company Primavera Capital.

Cayman Islands-based Boyu, established in 2011, invests across real estate and infrastructure, private equity and public equities, and also operates venture capital and renewable energy platforms.

Its private equity activity spans consumer and retail, technology and healthcare.

Starbucks launched its inaugural mainland Chinese store in Beijing in 1999 and now operates 7,800 outlets across 250 mainland cities.

CEO Brian Niccol stated the China market could expand to 20,000 stores, indicating Starbucks intends to retain a “meaningful” stake in the business. He also noted the fundraising process drew interest from more than 20 potential investors.

Starbucks reported attributable net earnings of $558.3m for the third quarter of the fiscal year 2025 (FY25) – a decline of 47% compared to the same period of the previous year. For the quarter ended 29 June 2025, the coffee giant’s consolidated net revenues grew almost 4% year-on-year to $9.45bn.