The acquisition is the largest in the coffee chain’s history.
Starbucks just announced its largest acquisition in the brand’s history. On Thursday, the fan favorite coffee chain said that it will become the full owner of its East China joint venture. According to a Fox Business article, the move is a part of Starbucks’ plan to increase its presence across Asia.
Starbucks is acquiring the remaining 50 percent stake from Unit-President Enterprises Corp. and President Chain Store Corp for about $1.3 billion in cash. After the deal is finalized, the coffee chain will operate 1,300 stores in the Shanghai and Jiangsu and Zhejiang Provinces, in addition to the company’s previously laid out plan to operate 5,000 stores in mainland China—which is its fastest growing market—by 2021.
Starbucks’ chief executive, Kevin Johnson, said, “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.”
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