Starbucks Takes Full Ownership of East China Business
July 27 2017 - 8:38AM
Dow Jones News
By Imani Moise
Starbucks Corp. said Thursday that it will become the full owner
of its East China joint venture in a bid to expand its presence in
Asia.
The coffee chain will acquire the remaining 50% stake in the
joint venture that it doesn't already to own from Uni-President
Enterprises Corp. and President Chain Store Corp. for roughly $1.3
billion in cash. At that price, the deal is the largest acquisition
in the company's history.
Upon closing, Starbucks will operate 1,300 stores in the in
Shanghai and Jiangsu and Zhejiang Provinces. The company has
previously laid out plans to operated 5,000 stores in mainland
China, its fastest-growing international market, by 2021.
"Unifying the Starbucks business under a full company-operated
structure in China reinforces our commitment to the market and is a
firm demonstration of our confidence in the current local
leadership team said Starbucks chief executive, Kevin Johnson.
Uni-President Enterprises and President Chain Store will also
buy Starbuck's 50% stake in President Starbucks Coffee Taiwan Ltd,
which operates 410 coffee shops in Taiwan, for $175 million.
Starbucks shares edged up half of a percent to $58.23 premarket
and have risen 4.4% so far this year.
Write to Imani Moise at imani.moise@wsj.com
(END) Dow Jones Newswires
July 27, 2017 08:23 ET (12:23 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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