Starbucks (SBUX) is forming a joint venture with Hong Kong-based Boyu Capital for its China business with Boyu gaining a 60% interest in Starbucks’ (SBUX) China retail operations.
Starbucks (SBUX) will retain 40% of its Chinese business and serve as the owner and licensor of the Starbucks global brand.
The company expects the total value of its China retail business to exceed $13B. This is comprised of the proceeds from the sale of a controlling interest in the joint venture, value of Starbucks’ (SBUX) retained interest, and new present value of ongoing licensing economics payable to Starbucks (SBUX) over the next decade or more.
“Boyu’s deep local knowledge and expertise will help accelerate our growth in China, especially as we expand into smaller cities and new regions. We’ve found a partner who shares our commitment to a great partner experience and world-class customer service,” said Brian Niccol, Starbucks CEO.
The joint venture is expected to be finalized in the second quarter of 2026 pending required regulatory approvals.
Starbucks (SBUX) shares were modestly higher on the news.