Private equity firm Boyu Capital is considered to be the frontrunner in Starbucks’s (NASDAQ:SBUX) search for a partner for its China business.
Boyu is expected to be the buyer of a controlling stake in the China business after outbidding other private equity firms, including Carlyle Group, according to a Bloomberg report on Tuesday, which cited people familiar with the matter. A deal would value the China business at more than $4 billion.
Starbucks (NASDAQ:SBUX) and Boyu may still need a few months to agree on the terms of a deal, according to the report. Others, including internet companies, may join as limited partners to help finance a transaction.
“We’ve had very strong interest from multiple, high-quality partners all of whom share our confidence in the long-term growth potential of Starbucks in China,” a Starbucks spokesperson told Bloomberg. Starbucks (SBUX) is evaluating five bids.
Boyu didn’t immediately respond to Bloomberg requests seeking comment. Carlyle declined to comment.
