Whitbread’s coffee shop company, Costa, is looking to “unlock its potential in China” by taking full ownership of its South China joint venture.
Costa is buying a 49% stake from its partner, Yueda, for RMB 310m (£35m). It currently owns 51% of the joint venture, which operates 252 shops in the south of China, including 93 stores in Shanghai.
Alison Brittain, chief executive of Whitbread, said: “One of our three key priorities is to expand internationally and today’s announcement marks a significant step in our ambitious growth plans for China.
“We have enjoyed an excellent partnership with Yueda over the past ten years together as we built the Costa brand in this key market.
“The coffee shop market in China is highly attractive, with a compelling opportunity for Costa to expand its presence over the longer term. This acquisition gives us full strategic and funding flexibility to unlock Costa’s potential in China.”
The South China business will continue to be consolidated in Costa and Whitbread financial accounts.
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