Starbucks’ China stake draws final bids from Carlyle, EQT, and Chinese investors, Reuters says
The sale comes as Starbucks struggles with falling market share in China.
Carlyle Group and EQT are amongst the global investment firms preparing final offers for a controlling stake in Starbucks' China business, along with Chinese investors HongShan Capital and Boyu Capital, according to a Reuters report, citing five people familiar with the talks.
Starbucks has asked bidders to submit binding offers by early October.
Last month, the company invited about 10 potential buyers to file non-binding bids, valuing the unit at up to $5b, according to an earlier Reuters report.
Two sources said Starbucks has decided to sell control of its China operations, though the size of the stake remains undisclosed.
Primavera is expected to bid with a partner, according to two of the sources.
Starbucks plans to keep its coffee bean roasting facility in China, partly for quality control reasons, two of the sources said.
One added that the terms of the deal, including how much of the business is sold, are still under discussion.
The sale comes as Starbucks struggles with falling market share in China, which accounts for more than 20% of its outlets, amidst growing competition from local coffee chains.
