Starbucks says it is selling a 60% stake in its business in China as part of a $4bn (£3.04bn) deal with investment firm Boyu Capital.
Under the agreement, the world’s biggest coffee chain will have a 40% stake in the Chinese retail operation and retain ownership of the Starbucks brand there.
Starbucks entered China in 1999 and the country is now its second-largest market outside the US, but has struggled in recent years with the rise of homegrown brands like Luckin Coffee.
The business will continue to be headquartered in Shanghai and will own and operate 8,000 outlets in the Chinese market, with plans to grow to as many as 20,000 locations, the firm said on Monday.
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