Starbucks is attracting interest from potential buyers for a stake in its China business, with offers valuing the unit at up to $10 billion.
The company is reviewing proposals as it looks to reshape its strategy in its second-largest market.
CNBC reported, citing people familiar with the matter, that private equity firms Centurium Capital and Hillhouse Capital are among the bidders. U.S.-based Carlyle Group and KKR & Co are also interested in the potential deal.
Starbucks has been exploring options such as strategic partnerships and joint ventures in China after losing market share to lower-priced competitors like Luckin Coffee and Cotti Coffee. In May, it cut prices on some products in the country but said it was not considering a full sale of the local unit.
According to the CNBC report, Starbucks may keep a 30 percent stake in the business, with the remaining interest split among several buyers, each holding less than 30 percent. The company is reviewing offers from around 30 domestic and foreign private equity firms.
A shortlist of bidders could be ready within two months, though the deal is not expected to close this year.
Starbucks operates 7,594 stores in China, based on its 2024 annual filing. In its latest quarterly report, sales in China were flat from a year earlier, following four consecutive quarters of decline.
