Starbucks Nears $10B Stake Sale in China Business as Bidders Line Up

Starbucks shares gained in pre-market trading as the coffee chain advances plans to sell a minority stake in its China operations. Private equity heavyweights including Carlyle, KKR, and Tencent are among the shortlisted bidders expected to submit offers within two weeks.

The Seattle-based company maintains it won't fully exit China, with CEO Brian Niccol emphasizing any deal must align with long-term strategic goals. "We remain committed to our China business and want to retain a meaningful stake," Niccol told investors last month after receiving interest from over 20 parties.

The potential $10 billion valuation comes as Starbucks navigates challenging conditions in its second-largest market. The auction process now enters a critical phase with management presentations scheduled to disclose financial details of the China division.