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Starbucks China stake sale draws bids valuing business up to $10 billion
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TechNode
Starbucks’ potential sale of a stake in its China business has attracted multiple bids that value the local operations as high as $10 billion, CNBC has reported.
Why it matters: China is Starbucks’ largest market outside the US and accounts for over 8% of its global revenue.
The offers reportedly value Starbucks’ China business at between $5 billion and $10 billion, with the final transaction likely to be priced toward the upper end of that range.
A person familiar with the matter noted Starbucks’ global market cap stands at around $108 billion, and its China business could reasonably be valued near $9 billion given its revenue contribution.
Context: Industry experts liken the move to the 2017 sale of a majority stake in the China business of McDonald’s to Citic Capital and Carlyle, which valued the unit at $2.1 billion.
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