Starbucks shortlists Tencent, JD for China unit investment, Bloomberg News reports

US coffee chain giant Starbucks has reportedly advanced around a dozen potential investors to the second round of bidding for a stake in its China operations, according to sources cited by Bloomberg. 

The shortlisted candidates include prominent investment firms Boyu Capital, Carlyle Group, EQT AB, FountainVest Partners, KKR, Hillhouse Investment and Primavera Capital, alongside tech giants JD.com (9618) and Tencent Holdings (0700).

The shortlisted firms will receive access to Starbucks' financial data in China, according to the report, which will enable them to evaluate the opportunity and prepare formal bids over the coming months. 

The potential investment, coupled with enhanced local expertise, is expected to assist Starbucks in significantly expanding its store count across China, further developing its supply chain infrastructure, and strengthening its mobile platform and brand strategy tailored for Chinese consumers.

Starbucks chief executive Brian Niccol recently emphasized that the search for a local partner is "not about capital." He stated the crucial factor is"how to ensure the Starbucks brand is in a better position going forward. 

Niccol had previously outlined ambitious growth plans, suggesting the company's footprint in China could potentially expand from the current about 7,800 stores to 20,000 locations.

STAFF REPORTER