Starbucks China Draws Bids Valuing It Up to $10B, Report Says

Starbucks (SBUX) reportedly is looking to sell a stake in its China operations.

Citing people familiar with the deal process, CNBC reported that Starbucks China has attracted offers for a potential stake sale that value the unit between $5 billion and $10 billion. “Almost 30 domestic and foreign private equity firms in China have submitted non-binding offers,” the report said, adding that Starbucks may retain a 30% stake.

According to Bloomberg, which cited people familiar with the matter, most prospective investors in Starbucks’ Chinese business “are eyeing a controlling stake in the operation.”

Addressing lagging sales in China was a key issue Starbucks CEO Brian Niccol had to address after he took over the role last September. Starbucks’ Chinese business has been grappling with intense competition from lower-priced local players, including Luckin Coffee.

Starbucks didn’t immediately return Investopedia requests for comment.

Starbucks shares, which entered Wednesday up 4% this year, are about 1.5% higher in premarket trading.