The Chinese investment company Boyu Capital has become the main contender for the acquisition of a controlling stake in the Chinese assets of Starbucks Corp., which is seeking to regain its position in the Chinese market. This is reported by foreign media.
Boyu Capital managed to stay ahead of other potential investors, including Carlyle Group Inc., EQT AB, FountainVest Partners, KKR&Co., Hillhouse Investment and Primavera Capital in the proposed deal valued at over $4 billion.
Starbucks has shortlisted about ten potential investors, including technology companies and private equity firms. From the point of view of analysts, the value of the Chinese division may amount to more than $ 10 billion, including royalties.
Negotiations are ongoing and do not guarantee the conclusion of a final agreement, as the negotiation of terms may take several months. At the same time, other investors, including Internet companies, can join as partners in the framework of joint financing of the transaction.
As part of the proposed deal, Starbucks intends to maintain a significant stake in the Chinese business and expand its network to 20,000 stores, despite fierce competition from Chinese brands, in particular, Luckin Coffee Inc.
Boyu is a Chinese investment company in real estate and infrastructure, consumer goods and retail, financial services, healthcare, media and technology. The company also owns assets in the venture capital and renewable energy sectors. It is headquartered in Hong Kong with offices in Beijing, Shanghai and Singapore.
Starbucks is an American multinational coffee company with a chain of coffee shops of the same name. The headquarters is located in Seattle, Washington. The company opened its first store in Beijing in 1999 and currently operates 7.8 thousand stores in 250 cities of mainland China.
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