Finance
Carlyle, EQT, HongShan among final bidders for Starbucks China, sources say
Published by Global Banking & Finance Review®
Posted on September 11, 2025
3 min readLast updated: January 22, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on September 11, 2025
3 min readLast updated: January 22, 2026
Carlyle, EQT, and HongShan are final bidders for Starbucks' China stake. Starbucks faces market challenges and plans to sell a controlling stake.
By Kane Wu and Julie Zhu
HONG KONG (Reuters) - Global investment firms Carlyle Group and EQT, alongside regional players HongShan Capital Group and Boyu Capital, are preparing final offers for a controlling stake in Starbucks' China operations, said five people with knowledge of the matter.
Starbucks has asked them to submit binding bids by early October, said three of the sources, who declined to be identified as the information was private.
An agreement could be reached by the end of next month, one of them added.
Starbucks had invited about 10 potential buyers to submit non-binding bids by early September, with most offering to value the China business at as much as $5 billion, Reuters reported last month.
Starbucks has recently decided to sell control of its China operations to the final buyer, said two of the sources. The size of the stake has not yet been disclosed.
The final round of bidders also includes Chinese private equity firm Primavera Capital, which is likely to team up with a co-investor, said two of the sources.
The Seattle-based coffee group is seeking to retain control of its coffee bean roasting facility in the world's second-largest economy, said two of the sources, with one adding that it was for quality control purposes.
Terms of the deal structure, including the size of the stake being sold, remain negotiable, said one of the sources.
Starbucks has said that it would maintain a meaningful stake in the China business.
In response to a Reuters request for comment, a spokesperson for Starbucks referred to its latest quarterly earnings where it had record-breaking sales growth in its international business and the third consecutive quarter of revenue growth in China.
The spokesperson declined to comment on the ongoing sale process.
Carlyle, Primavera and HSG, formerly known as Sequoia China, all declined to comment. EQT and Boyu did not respond to a request for comment.
Goldman Sachs, which is advising Starbucks on the sale, declined to comment.
The sale comes as Starbucks faces declining market share in China - home to more than a fifth of its cafes - due to intensifying competition from local rivals.
Its market share fell sharply to 14% last year from 34% in 2019, according to Euromonitor International data.
To counter these challenges, the chain has since implemented measures such as reducing prices for select non-coffee beverages in China and accelerating the introduction of new, localised products.
Comparable-store sales in China increased 2% in the quarter ended on June 29, versus zero growth in the previous quarter.
(Reporting by Kane Wu and Julie Zhu; Editing by Kim Coghill and Jane Merriman)
The final bidders include Carlyle Group, EQT, HongShan Capital Group, and Boyu Capital.
Most bidders have valued the China business at as much as $5 billion.
Starbucks is facing declining market share in China, which fell to 14% last year from 34% in 2019 due to increased competition.
Starbucks has implemented measures such as reducing prices for select non-coffee beverages and accelerating the introduction of localized products.
Starbucks has asked bidders to submit binding bids by early October.
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