Starbucks Mulls Partial Sale of Japan Operations

Starbucks is reportedly considering strategic options for its Japanese business, including a potential partial sale, according to people familiar with the matter. The move, which could value the Japan operations between 400 billion and 500 billion yen (approximately $2.5 billion to $3 billion), follows a similar major restructuring of the company's business in China earlier this year.

The coffee giant is said to be evaluating interest from both strategic industry partners and private equity investors. No final decisions have been made, and the company has not publicly commented on the reports. Shares of Starbucks rose following the news.

This potential move mirrors a significant transaction Starbucks completed in April, when it sold a controlling 60 percent stake in its Chinese operations to private equity firm Boyu Capital for a $4 billion valuation. That deal left Starbucks with a 40 percent minority stake. The China divestiture was driven by challenges including slowing growth, pandemic-related disruptions, and intense competition from domestic rivals like Luckin Coffee.

Analysts suggest a similar rationale could apply in Japan. Partnering with a local investor could help...