Talks have begun: A new partner for Starbucks in Turkey

The US private equity firm Apollo Global Management is in talks to acquire a minority stake in the Middle East, North Africa, and Central Asia Starbucks franchise, which is operated by the Kuwaiti AlShaya Group.

According to sources speaking to Reuters, the plan involves the sale of an approximately 30 percent minority stake to the US firm. It is also noted that Saudi Arabia's sovereign wealth fund, the Public Investment Fund (PIF), is involved in the discussions.

Starbucks operates approximately 2,000 retail locations across 13 countries in the Middle East and North Africa, including Turkey. As previously reported by Reuters, this unit of the company was valued between 4 billion and 5 billion dollars in 2022, before the company exited Russia.

ADVERSELY AFFECTED BY THE ISRAEL-PALESTINE WAR

In a statement made in January, Starbucks said that the Israel-Palestine war had harmed its business in the region, as it missed market expectations for its first-quarter results.

Following boycotts, Starbucks announced in October that it is a non-political organization and denied rumors that it provides support to the Israeli government or military.

ACQUIRING OPERATING RIGHTS OF WESTERN COMPANIES

The partnership will expand the investor base of the private company, which has been held by the Alshaya family since 1999.

Founded in 1890, Alshaya is one of the largest retailers in the region, holding the operating rights for popular Western brands such as The Cheesecake Factory, Shake Shack, and Pottery Barn.

Some of the largest private companies in the Middle East are increasingly seeking to bring in outside investors through listings or strategic stake sales.

News Source: 12punto