Starbucks Sells Control of China Unit to Boyu in Growth Push, Reuters Reports

Starbucks Corporation (NASDAQ:SBUX) is included among the 13 NASDAQ Stocks with Highest Dividends.

On April 2, Reuters reported that Starbucks Corporation (NASDAQ:SBUX) had closed its deal with Boyu Capital to sell control of its China operations, the Seattle-based coffee company said on Thursday. The outline of the deal had first been announced in November. It is aimed at restarting growth in the world’s second-largest economy, where local competitors such as Luckin Coffee and Cotti Coffee have been gaining share with lower prices.

Funds managed by Boyu will take a 60% stake in Starbucks’ China business. Starbucks will keep the remaining stake and continue to license its brand and intellectual property to the new venture. The firm also noted that Boyu’s founders include the grandson of former Chinese President Jiang Zemin. Molly Liu said in a statement that the deal would drive “hyper-localization” of the brand in China.

China currently has around 8,000 Starbucks stores. The company plans to expand that number to 20,000 stores in partnership with Boyu.

Starbucks Corporation (NASDAQ:SBUX) is a global roaster, marketer, and retailer of specialty coffee. Its North America segment includes the United States and Canada, while its International segment spans China, Japan, Asia Pacific, Europe, the Middle East and Africa, Latin America, and the Caribbean.

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