Starbucks Sells 60% Stake in China Business in $4 Billion Dollar Deal

SEOUL, SOUTH KOREA – MAY 31: Customers sit outside a Starbucks coffee store on May 31, 2006 in Seoul, South Korea. The National Tax Service (NTS) has launched its first Tax audit of Starbucks Korea since its establishment in 1997. (Photo by Chung Sung-Jun/Getty Images) *** Local Caption ***

Starbucks is forming a joint venture with Chinese investment firm Boyu Capital to operate Starbucks stores in China. Under the agreement announced Monday, Boyu acquire a 60% interest in Starbucks’ retail operations in China, which is valued at $4 billion. Starbucks will retain a 40% interest in the joint venture and will own and license the Starbucks brand. Starbucks entered China almost 30 years ago and has been credited with growing a coffee culture in the country. But in recent years, the Seattle coffee giant has struggled to compete with cheap, fast-growing Chinese startups like Luckin Coffee.