Starbucks has reportedly finalised Carlyle Group and EQT, along with regional companies HongShan Capital Group and Boyu Capital, for its China stake sale, as reported by Reuters.

The shortlisted companies are preparing to submit their final offers for a controlling interest in Starbucks' operations in China.

The final round of bidders also includes Chinese private equity company Primavera Capital, which is likely to partner with another investor.

An agreement is expected to be finalised by the end of October 2025.

The company had previously invited ten potential buyers to submit non-binding bids by early September, with most valuations estimating the China business to be worth around $5bn.

Starbucks has opted to divest control of its China operations, although the exact size of the stake being sold has not been disclosed.

The coffee company intends to keep control of its coffee bean roasting facility in China, primarily for quality control reasons.

The specifics of the deal structure, including the stake's size, remain open for negotiation.

Starbucks' latest quarterly earnings statement indicated strong sales growth in its international markets and a third consecutive quarter of revenue growth in China.

The stake sale comes as Starbucks experiences a decline in market share within China, which accounts for more than a fifth of its cafés, due to rising competition from local brands.

To address these competitive pressures, Starbucks has introduced measures such as lowering prices on select non-coffee beverages and accelerating the rollout of new, locally tailored products.

In the quarter ending 29 June 2025, comparable-store sales in China rose 2%, a recovery from zero growth in the previous quarter.