Starbucks is betting big on China by selling majority stake
Business
Starbucks announced it is selling 60% of its China operations to Boyu Capital for $4 billion, but it's still holding onto the brand and a 40% stake.
The move comes as homegrown rivals like Luckin Coffee are giving Starbucks some tough competition in its second-biggest market after the US.
The deal will help Starbucks leverage Boyu's local expertise
With this deal, Starbucks plans to team up with Boyu's local know-how to refresh its menu, roll out new digital features, and open way more stores—growing from 8,000 to a massive 20,000 locations across China (with Shanghai as the main hub).
The deal is set to close next year and shows Starbucks isn't backing down from growing in China anytime soon.