Equity companies Carlyle and Boyu Capital have emerged as frontrunners to buy a majority interest in Starbucks’ operations in mainland China, as reported by the Financial Times (FT).
The full China business is expected to be valued at $4bn, not including royalties, which are still being negotiated.
Five companies submitted binding proposal in early October 2025.
Starbucks has confirmed to the FT that it is reviewing offers from five bidders, and a final decision from the company’s management is anticipated by the end of October, although the exact timing could change.
Once a major profit contributor, Starbucks’ China division has come under pressure from lower‑priced domestic rivals such as Luckin Coffee, prompting the US group to reduce prices on some beverages in summer 2025.
Starbucks states that the aggregate value of the transaction — taking into account partner investment, Starbucks’ remaining stake and future royalty payments — is likely to exceed $10bn.
A company spokesperson told the FT that the sale process had attracted “strong interest from multiple, high-quality partners, all of whom share our confidence in the long-term growth potential of Starbucks in China.”
Other private equity houses reportedly in contention were Neil Shen’s HongShan Capital Group (HSG), Primavera Capital and FountainVest.
Bidders might form a consortium, with Starbucks possibly retaining up to 49% ownership.
Insiders state that bidders are being evaluated on their ability to overhaul the supply chain in China and sustain relationships with local partners — considerations that could favour Chinese companies.
The divestment comes as Starbucks’ China revenue fell in the year to September 2024 following weaker same‑store sales.
In July 2025, Starbucks reported attributable net earnings of $558.3m for the third quarter of the fiscal year 2025 (FY25), a slump of 47% compared to the same period of FY24.
At the end of June, Starbucks was running 7,828 stores on the mainland. By comparison, Luckin now operates about 26,000 outlets in mainland China and has begun expanding abroad, including opening its first US location in New York.
HSG declined to comment and Boyu, Carlyle, FountainVest and Primavera did not respond to requests for comment by the FT.
