Centurium Capital Partners, an investor in China’s Luckin Coffee, is in advanced negotiations to purchase Nestlé-owned Blue Bottle Coffee, Bloomberg reported, citing people familiar with the matter.

Founded in California, US, in 2002, Blue Bottle currently operates cafés in China, Hong Kong, Japan, Singapore, South Korea, and the US.

The company is supported by Nestlé, which acquired 68% of Blue Bottle Coffee in 2017 for $425m.

The latest negotiations are reportedly in the final stages, although a definitive agreement has not yet been assured.

The move comes as Centurium and Luckin have been weighing targets including Blue Bottle, Costa Coffee and China’s % Arabica operator, according to people familiar with the talks.

Meanwhile, several Chinese news outlets, including Jiemian News, have reported that Centurium Capital will acquire Luckin Coffee for a price less than $400m.

Seoul Economic Daily reported that Jiemian News described the deal as "symbolically significant in the coffee market," adding that "one side is a global brand in the speciality coffee sector, while the other is a Chinese brand that has distinguished itself through a robust supply chain system and scale."

Despite the reports, none of the companies involved has issued public confirmation of a transaction.

Nestlé began reviewing options for Blue Bottle last year, according to multiple media accounts. The food group also engaged an investment bank to examine potential divestment routes.

Blue Bottle currently operates more than 100 cafés across the US and Asia. On the other hand, Centurium-backed Luckin is regarded as the biggest coffee chain in China with 31,000 stores.