The Clap
The Public Investment Fund (PIF) is the strongest candidate to buy a minority stake in the Starbucks franchise in the MENA region, which is owned by the Al Shaya Group.
The Deets
According to Bloomberg, the PIF, whose assets are worth $620 billion, is leading a consortium of investors who are eying a stake in the franchise and an agreement could be reached as early as next week.
Al Shaya Group, which is working with JPMorgan Chase & Co. on the deal, has estimated the group’s value at $15 billion but potential buyers’ expected bids are close to $11 billion.
Al Shaya Group
Al Shaya Group was founded in 1890 and is one of the largest operators of famous retail brands, including Victoria’s Secret and the Cheesecake Factory, in the Middle East as well as the coffee chain “Starbucks”, which is the group’s largest franchise.
Why this Matters
Starbucks will help the PIF gain immediate access to approximately 1,700 branches in 14 markets, which include some of the most prominent emerging economies from Saudi Arabia to Turkey.
PIF sets sights on Starbucks ☕️
