SummaryCompaniesStarbucks aims to finalise sale by year-end, sources sayPrimavera, Carlyle, Hillhouse, EQT, may bid, sources sayChina market share was 14% in 2024 versus 34% in 2019Cafe chain faces sluggish economy, rapid growth of local rivals HONG KONG, Aug 22 (Reuters) - Starbucks (SBUX.O), opens new tab has asked a short-listed group of potential bidders to submit non-binding bids for a stake in its China business within the next two weeks, two people with knowledge of the matter said. The U.S. coffee shop chain invited interested parties including private equity firms Carlyle (CG.O), opens new tab, EQT (EQTAB.ST), opens new tab, Hillhouse Investment and Primavera Capital to attend management presentations where it would disclose financial and operational details of its China business, said one of the people as well as a third person with knowledge of the presentations. Advertisement · Scroll to continue Other potential bidders include Bain Capital, KKR & Co (KKR.N), opens new tab and technology major Tencent (0700.HK), opens new tab, said one of the first two sources and two other people familiar with the matter. A new partner in China could add impetus to a business whose market share has more than halved in the past five years, as low-price local rivals grow apace while consumers become increasingly cost-conscious in a stuttering economy. In May this year, Starbucks began the sale by inviting interested parties to answer questions about their businesses by late June, Reuters previously reported. The Seattle-based company said at the time it was not considering a full sale of the business - which bidders expect will be valued at up to $10 billion, CNBC reported citing sources. Advertisement · Scroll to continue Get the key points from this story with Reuters AI In July, it selected up to 10 interested parties and signed non-disclosure agreements ahead of granting potential access to financial and operational figures, the five people said. It has yet to finalise the structure of the sale or size of the stake, said the people, who declined to be identified as the information was not public. The cafe chain has held informal talks with a range of potential buyers since the second half of last year and aims to reach a deal by year-end, sources previously told Reuters. CEO Brian Niccol on Starbuck's quarterly earnings call last month said the cafe chain had received interest from more than 20 parties and was evaluating options. "We remain committed to our China business and want to retain a meaningful stake... We will only enter a transaction if it makes sense for Starbucks," said Niccol, CEO since August last year. Ad Break Coming Up NEXT StayNext OffEnglish 180p288p360p480p540p576p720pHD1080pHDAuto (180p) About ConnatixV605362 About ConnatixV605362 Continue watchingafter the adVisit Advertiser websiteGO TO PAGE Starbucks on Friday declined to comment further. Primavera, Carlyle, EQT, KKR and Bain declined to comment. Hillhouse and Tencent did not respond to requests for comment. Starbucks is pursuing the sale after reporting strong overall revenue for the three months through June 29 under a turnaround plan Niccol implemented after several quarters of falling earnings. Net revenue rose 3.8% to $9.46 billion, slightly exceeding the average analyst estimate, though same-store sales fell for a sixth consecutive quarter, by 2%. In China, Starbucks faces sluggish economic growth and competition from local brands such as Luckin Coffee (LC0Ay.D), opens new tab, which has gained market share with cheaper products and greater presence in smaller cities. Starbucks' market share in the world's second-largest economy - home to more than a fifth of its cafes - was 14% last year versus 34% in 2019, showed data from market researcher Euromonitor International. The chain has since taken the rare step of reducing prices for some non-coffee drinks in China and increased the pace of new and China-centric product innovation. Comparable-store sales in China increased 2% in the quarter ended June 29 versus zero growth in the previous quarter. Starbucks operated 7,828 stores in China as at June-end, its latest quarterly report showed. It did not disclose core earnings at its China business. Reporting by Kane Wu and Julie Zhu in Hong Kong; Additional reporting by Casey Hall in Shanghai; Editing by Christopher Cushing Purchase Licensing Rights Kane WuThomson ReutersKane Wu covers M&A, private equity, venture capital and investment banks in Asia. She tracks the region's most high-profile deals, fundraisings as well as investment trends amidst geopolitical, macroeconomic and regulatory changes. She was nominated for a SOPA Excellence in Business Reporting award for coverage of China regulatory crackdown in 2021. Prior to Reuters, she worked at the Wall Street Journal and also wrote about Asia's loan market for Thomson Reuters Basis Point. She is based in Hong Kong.Julie ZhuThomson ReutersJulie Zhu is a Hong Kong-based Senior Correspondent for Reuters, focusing on financial news and corporate deals across Greater China. Her coverage spans regulatory policies, M&A, IPOs, private equity and financial institutions. Since joining Reuters in 2016, Julie has been at the forefront of covering the region’s significant events including China’s unprecedented regulatory crackdown and Beijing’s COVID response policies. She was named Reuters’ Reporter of the Year in 2021. Previously, Julie worked at the Financial Times where she reported on business and general news about South China and Hong Kong.