Starbucks to buy remaining stake in East China JV for $1.3 bln (updated)

President Chain Store

27/07/2017 12:42

(Adds details) 
    July 27 (Reuters) - Coffee chain Starbucks Corp  SBUX.O  
said on Thursday it would buy the remaining 50 percent share of 
its East China business from its joint venture (JV) partners for 
about $1.3 billion, in its biggest ever acquisition. 
    The cash deal will give Starbucks ownership of about 1,300 
stores in Shanghai and Jiangsu and Zhejiang provinces, and 
aligns with the U.S. company's target of operating 5,000 stores 
in mainland China by 2021. 
    China is Starbucks' fastest-growing market outside the 
United States by number of stores. Revenue from its China and 
Asia-Pacific business rose 13 percent to $768.9 million in the 
quarter ended April 2. 
    Starbucks is buying the share from East China JV partners 
Uni-President Enterprises Corp  1216.TW  (UPEC) and President 
Chain Store Corp  2912.TW  (PCSC).  urn:newsml:reuters.com:*:nBw7Hlwjqa 
    In a separate deal, Starbucks will sell its 50 percent stake 
in its Taiwanese JV to UPEC and PCSC for about $175 million. The 
Taiwan JV operates about 410 Starbucks stores. 
    Both deals are expected to close by early next year. 
    Starbucks is scheduled to report third-quarter earnings on 
Thursday. 
 
 (Reporting by Sruthi Ramakrishnan in Bengaluru; Editing by Sai 
Sachin Ravikumar) 
 ((sruthi.ramakrishnan@thomsonreuters.com; Within U.S.+1 646 223 
8780, outside U.S. +91 80 6749 1130; Reuters Messaging: 
sruthi.ramakrishnan.thomsonreuters.com@reuters.net)) 
 
Keywords: STARBUCKS JOINTVENTURE/