Starbucks Coffee Company and Boyu Capital, a private equity
firm, have entered into an agreement in China, one of
Starbucks' fastest-growing markets globally.
As part of the deal, a joint venture has been formed. Boyu will
hold up to 60% ownership of Starbucks' retail activities in
China, while Starbucks will keep a solid 40% stake. Starbucks'
headquarters inShanghai will stay in charge of the 8,000 Starbucks
stores currently operating across the country.
The joint venture represents a strategic move to grow the
business in the world's second largest economy, with plans to
expand to as many as 20,000 Chinese locations over time.
Starbucks has valued its operations in China at $13billion(!)
having stated that the partnership combines "Starbucks
globally recognised brand, coffee expertise, and partner
(employee)-centred culture with Boyu's depth of understanding
of Chinese consumers". The deal aims to help Starbucks to
stay competitive in China, where local
