Starbucks buys its stake in a joint US-Chinese venture for $1.3 billion in cash

Almaty. July 28. Silkroadnews – Starbucks is buying out its stake in a joint US-Chinese venture for $1.3 billion in cash, British portal Market Watch reported.
“Starbucks Corp. SBUX said it is acquiring the 50% stake in its East China joint venture it does not already own for about $1.3 billion in cash. The company will assume 100% ownership of about 1,300 Starbucks stores in Shanghai and Jiangsu and Zhejiang Provinces. The coffee store chain said it is still committed to operating more than 5,000 stores in Mainland China by 2021”, report said.
According to Belinda Wong, chief executive of Starbucks China, the full ownership in the company will provide an opportunity to fully use the existing infrastructure for delivery and processing of coffee, introduce digital technology and improve career opportunities for the company’s employees.
It is noted that Starbucks also acquires a 50% stake in its Taiwan joint venture operating around 410 stores for about $175 million.
The company will inform investors on the impact of transactions on profits in the third quarter.