Starbucks China Draws Bids Valuing Unit Up To $10 Billion

Starbucks is exploring a stake sale in its Chinese operations, with offers valuing the business at between $5 billion and $10 billion, CNBC reported, citing sources familiar with the process. Investopedia’s Nisha Gopalan reported the story on July 9, 2025.

Starbucks' move comes amid stiff competition in China from lower-cost local rivals like Luckin Coffee.

The coffee giant has reportedly received non-binding bids from nearly 30 domestic and international private equity firms. Starbucks is expected to retain a 30% stake in the business, sources said.

Bloomberg added that many of the suitors are seeking a controlling stake in the operation.

The move comes amid stiff competition in China from lower-cost local rivals like Luckin Coffee.

Reviving the underperforming China unit has been a priority for Starbucks CEO Brian Niccol since he took over in September. Starbucks shares, which were up 4% year-to-date at one point this week, rose an additional 1.5% in premarket trading following news of the potential deal.