Starbucks’ China business has drawn bids valuing the unit at around $5bn, according to sources close to the process cited by Reuters. 

The offers, based on a multiple of roughly 10x projected 2025 EBITDA of $400m–$500m, mark one of the largest potential China divestments by a global consumer company in recent years.

Private equity heavyweights Carlyle, EQT, Bain Capital, KKR, Hillhouse, Primavera Capital, and Chinese technology group Tencent were among the invited bidders. It remains unclear which parties submitted offers or advanced to the next stage.

Starbucks plans to retain a significant stake in its China operations. CEO Brian Niccol confirmed in July that the group was not pursuing a full sale.

The US coffee chain faces mounting pressure in China, where its market share has dropped to 14% from 34% in 2019, according to Euromonitor. Rival Luckin Coffee has surged ahead by offering lower-priced products and rapidly expanding into smaller cities.

Despite these challenges, Starbucks’ comparable-store sales in China rose 2% in the latest quarter, supported by price cuts and new localised products. The Seattle-headquartered company has a global market capitalisation of about $99bn.

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