Starbucks to own 100% of China stores

PanARMENIAN.Net - Starbucks is to take full ownership of all its China outlets, after agreeing to buying out its joint venture partner for $1.3bn, according to BBC News.

The deal will see it acquire the 50% stake it does not already hold in 1,300 stores in Shanghai and the provinces of Jiangsu and Zhejiang.

Starbucks already fully owns the other 1,500 outlets in China - its fastest-growing market outside of the U.S.

The coffee giant said the buyout was its biggest ever acquisition.

The announcement came as Seattle-based Starbucks announced net income fell 8.3% to $691.6m for the three months to July - only just matching market expectations.

The company also announced plans to close all 379 of its Teavana stores by the middle of next year because they had been "persistently underperforming".

Starbucks bought the tea brand for $620m in 2012, and plans to continue carrying the products in its main Starbucks stores.

Starbucks shares fell 5.5% to $56.24 in after-hours trading.